Abstract In a number of articles in this journal the use of generalised cost in travel demand analysis and transport planning has been subject to debate. However, some of the fundamental problems raised in these articles are left unanswered — e.g., the precise relationship between conventional microeconomic consumer demand theory and generalised cost, an issue with which this article is concerned. It is shown here that necessary and sufficient conditions for expressing travel demand in terms of generalised cost are that this cost, when measured in monetary units, is linear, and that the time variable is weighted by a constant marginal value of time. It is also shown that these conditions imply strong assumptions about the consumer's behaviour — e.g., that the willingness to pay to save time whilst travelling is not a function of real income.


    Access

    Access via TIB

    Check availability in my library

    Order at Subito €


    Export, share and cite



    Title :

    Microeconomic theory and generalised cost


    Contributors:

    Published in:

    Publication date :

    1981




    Type of media :

    Article (Journal)


    Type of material :

    Print


    Language :

    English



    Classification :

    BKL:    55.80 Verkehrswesen, Transportwesen: Allgemeines / 74.75 Verkehrsplanung, Verkehrspolitik
    Local classification TIB:    535/7000



    Traffic Assignment Models and Microeconomic Theory

    Smith, B. / Taplin, J. / Monash University | British Library Conference Proceedings | 2005



    Is generalised cost justified?

    Wardman, M. / Association for European Transport | British Library Conference Proceedings | 2008


    The generalised cost dilemma

    Grey, Alexander | Online Contents | 1978


    A microeconomic trip generation equilibrium model

    Martinez, F. C. / Huenupi, M. A. / European Transport Forum | British Library Conference Proceedings | 1997