Heterogeneity in Commuter Departure Time Decision: A Prospect Theoretic Approach

This study is an investigation into the applicability ofprospect theory in the context of morning commutes. Weextend the analysis adopted in our previous study toaccount for both observed and unobserved heterogeneityacross commuters. Two decision frames with multiplereference points and a maximum satisfaction point(preferred arrival time, PAT) are assumed to exist forcommuters. One of the decision frames involves a quasi-gainregion where commuters value gains as if they arelosses. This decision frame is fully compatible withprospect theory, while the other yielded results whichare incompatible with the theory in the case of losses.