This paper deals with the question how the capability of car drivers to estimate travel distance, travel time, fuel costs and other motoring costs as well as the cost of a new hypothetical congestion charge influences their decision to change their travel behaviour. The analysis makes use of an integrated choice and latent variable model (ICLV) which merges classic choice models with the structural equation approach (SEM) for latent variables. The integrated choice and latent variable model improves the explanatory power considerably compared with a conventional choice model. The paper provides evidence that charge complexity decreases the resistance in considering behavioural changes, a finding which can be explained by the ambiguity avoidance.
JEL-Classification: R41;R48;C43
Keywords: Discrete choice models, latent variables, marginal cost pricing, complex price structures
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