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Farsi, Mehdi
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Farsi, Mehdi
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Professor
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mehdi.farsi@unine.ch
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- PublicationAccès libreCommitments and sunk costs in private mobility: A study of Swiss households facing green transport choices(Neuchatel University of Neuchatel Institute of Economic Research, 2020)
; ; This paper experimentally investigates the existence of behavioural deviations from the oft-assumed rationality in private transport decisions, avoiding the selection-biases in revealed data. Through a choice experiment answered by 995 Swiss respondents, we explore the linkages between long- and medium-term travel investment decisions, and the choice of transport mode. We test the existence of commitment device usage in car and public transport pass purchases, and the sunk cost fallacy, as well as the impact of electric vehicles on mode choice. We find little evidence to support the existence of commitment devices, and no sunk cost fallacy. We further show that electric vehicle owners are equally likely to commute in their car, however use a greater mix of transport modes for leisure and long-distance trips. Our results support the importance of marginal travel costs in transport policy, as well as demonstrate the wide impact of rising EV consumption.