Explaining Mode Choice, Taste Heterogeneity, and Cost Sensitivity in a Post-Car World

This paper analyzes mode choice behavior in a hypothetical future market which includes innovative modal alternatives to explore behavioral reactions to changes in different attributes. The absence of private cars in the choice set is justified by car-reducing policy developments, suggested by an increased public support of mode sharing and free-floating car sharing systems, leaving public transport (PT) as the only traditional reference mode for longer distances: How would today’s people behave in a possible future situation where private cars were no longer part of their alternative sets? Results show a large heterogeneity in cost sensitivity which decreases with higher income and reveal mode specific values of travel time savings. Respondents having car loving attitudes exhibit a lower travel cost sensitivity, partly resulting from an extreme dislike of the cost-free bike alternative. On the other hand, respondents exhibiting positive attitudes towards slow and public means of transport ’stick’ to these modes: They exhibit a stronger cost-sensitive trade-off behavior and often choose the bike alternative when travel costs increase. Policy implications are derived by analyzing mode-specific attribute sensitivities conditional on individual characteristics. While travel time cannot be affected by potential vehicle sharing providers, costs differ substantially between these modes. Therefore, this paper focuses on revealing heterogeneity in travel cost sensitivity, which can serve as a basis for elaborating efficient operating strategies in a world with restricted private car ownership.