The value of in-train activities and their impact on value of time

Abstract

Although many papers about conducting onboard activities start from the assumption that these reduce the value of time (VoT), surprisingly limited empirical evidence is provided for this assumption. This evidence is hard to find in regular cross sectional research due to a self-selection problem: Travelers that are time pressured are more likely to work on board, which may reduce their VoT, but their VoT may remain relatively high. As a solution for this problem, Wardman and Lyons (2016) propose to compare the VoT estimated from choices made by the same persons observed under two different conditions: travelers can conduct their favorite activity or they cannot. The difference between both VoT estimates can be regarded as the value of activities (VoA). Our paper is the first to apply this approach. The results provide evidence that conducting onboard activities indeed reduces the VoT. Furthermore, the VoA has the expected positive value. The paper presents VoA values for three common in train activities separate for commuters and leisure travelers as well as the VoT in the activity and in the non-activity condition. Furthermore, VoA and VoT relations with socio-demographic and trip characteristics are explored. Finally, an endowment effect is discussed: VoA is found to be higher for travelers that first make choices in the activity condition compared to travelers who first make choices in the non-activity condition. Implications for policymakers, transport providers and scholars are discussed as well implications for the Automated Vehicle (AV) area, because just like trains, AV’s allow conducting onboard activities.