The Exploratory Advanced Research Program Fact Sheet Experiments on Driving under Uncertain Congestion Conditions and the Effects on Traffic Networks from Congestion Pricing Initiatives When and why drivers choose a priced or tolled facility versus an untolled but congested parallel route is the subject of a 3-year project funded by the Federal Highway Administration’s (FHWA) Exploratory Advanced Research (EAR) Program, in partnership with the University of Central Florida and Georgia State University. “Experiments on Driving under Uncertain Congestion Conditions and the Effects on Traffic Networks from Congestion Conditions and the Effects on Traffic Networks from Congestion Pricing Initiatives” is examining how driver’s risk preferences influence their choice of route and travel departure time. Background Understanding drivers’ reactions to congestion pricing initiatives has been limited partly due to the type of data commonly collected. Stated preference data are simply responses to surveys asking for intended responses to congestion pricing, lacking clear incentives for respondents to answer truthfully and accurately. While useful for some purposes, these methods are known to generate biased and volatile responses. This study is using experimental economics to make observations on actual choices with precise monetary incentives. The participant pool is drawn from drivers in Orlando, Florida and Atlanta, Georgia. Participants receive travel options with actual consequences, primarily involving money, where the choice situations vary with respect to congestion and congestion pricing. The overall objective is to understand why drivers change their route choices when tolls change. A particular focus is the extent to which response differences depend on varying preferences and perceptions of travel times and travel time reliability. The study is exploratory because many of the instruments and procedures have not previously been employed for the purposes of generating behavioral data on policy issues, in the way that they are in this study. This study assesses the responses to several congestion pricing schemes. Three basic types of experiments were conducted: a field experiment using GPS instruments; a multidriver traffic simulation experiment; and a single driver simulator experiment, all using field participants. The field experiment and the single-driver simulator experiments are individual choice experiments with no interactions between participants. The multidriver traffic simulator is a group experiment where the traffic conditions are endogenously generated by the simultaneous, but independent, choices of the participants. Experimental Economics Tools Experimental economics, and the closely related field of cognitive psychology, utilizes laboratory experiments in addition to field observations to understand complex, naturally occurring, market systems and choices. The market mechanism of priced lanes assumes that drivers will differentiate themselves as to route choice but there is little understanding as to the mechanisms for that differentiation. Studies of the SR-91 in California show that income level is not a strong determinate and although 42% of commuters use the lanes, few commuters are everyday users. The UCF/GSU study is examining the role of risk preferences and travel time perceptions in route choice. A route choice represents a type of lottery with an expected pay-off (travel time) and costs (toll vs. non-toll). Field Experiments We studied drivers in four regions: an eastside and a west side commuter route in Orlando, and a north-east and a north-west commuter route in Atlanta. All participants’ cars were outfitted with a Global Positioning System (GPS) device that receives but does not send signals, allowing the researchers to collect information on driving habits. All driving data is downloaded directly from the device to a computer at meetings with the researchers. Approximately two weeks passed between each meeting: this time frame was determined by the capacity of the GPS device’s ability to store data of participants’ travel log. Each driver faced a choice between taking two routes during morning or evening commute. One route was an express way and the other a local route, roughly parallel to each other. Each drive was only about five miles long, and up to 20 drives were paid during the two weeks between study meetings. During the first two week drive period each driver was simply paid a fixed fee each time there was a valid recorded drive, up to the maximum of 20 drives. The subsequent two drive periods involved additional surcharges and subsidies that varied by route. These incentives varied across drivers, and across driver periods, but each driver faced the same net incentive during each drive period. Lab Experiments TO LEARN MORE For more information on this EAR Program project, contact Karen White at 202-3669474, email: Karen.white@dot.gov The simulator driving tasks involved driving a car in a computer simulation and choosing between various routes to get from the origin to the destination. Earnings depend on the length of time and on the choice between a tolled and a non-tolled route. The simulator tasks are conducted on the same participants that drive in our commuter study using GPS. These tasks are required to assess the risk attitudes of drivers and any characteristic biases in how they form beliefs over travel times from experiences. In all these tasks the consequences are real money, not just hypothetical. In addition, participants responded to a socio-demographic questionnaire, an opinion questionnaire about congestion policies, and a traffic survey about their driving habits and congestion experiences. Together, the field and lab data will be used to model how driver characteristics interact to determine the use of tolled routes. Status Over 480 drivers in Atlanta and Orlando have participated in the study. In addition 200 students have also participated in testing whether student behavior can predict field drivers’ behaviors. Driving behavior is characterized in terms of risk attitudes, and risk perceptions. Preliminary analysis of the data shows comparability of risk attitudes across tasks as well as regions, and that students behave in many ways similarly to field drivers. These preliminary findings demonstrate the possibility that these simulator methods will provide useful data at relatively small additional costs for a variety of transportation issues. In December, 2011 the research received positive peer review from academics in the areas of experimental economics and road pricing at a FHWA organized workshop. The research will move on to understand demand elasticity related to tolls and congestion as well as the potential for revenue-maximizing or welfare-maximizing tolls.