Recently Johnson has outlined the utility‐maximization approach to the estimation of transport demand functions. This note demonstrates how the use of such demand systems permits improvements to be made in the evaluation of the benefits of transport investments through the measurement of more satisfactory indices of consumer surplus than the Marshallian area under an ordinary demand curve. Section 2 outlines the alternative measures of consumer surplus and their relationship with demand curves in the case where only one price changes. In Section 3 we employ the theory of duality to show how the compensating variation and equivalent variation can be derived from utility‐based demand systems. The approach is illustrated using the linear expenditure system in Section 4, while Section 5 concludes with some comments on alternative utility‐based demand systems and the practicality of this approach to evaluation.
Utility maximization, demand systems and transport benefit evaluation
Transportation Planning and Technology ; 7 , 1 ; 49-54
01.09.1981
Aufsatz (Zeitschrift)
Elektronische Ressource
Unbekannt
Utility maximisation, demand systems, and functional form in transport demand analysis
Taylor & Francis Verlag | 1979
|Consistency of nested logit models with utility maximization
British Library Conference Proceedings | 2006
|A utility maximization model of driver traffic safety behavior
Elsevier | 1986
|Regret Minimization and Utility Maximization Mixed Route Choice Model
British Library Conference Proceedings | 2020
|