Experimental Economics and choice in transportation: Incentives and context

•The paper critically synthesize experimental designs and best practices.•Experiments can be classified into endogenous and exogenous.•Laboratory experiments are carried out to ensure internal validity of theories.•Field experiments are carried out to test external validity of theories.•Virtual real...

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Published in:Transportation research. Part C, Emerging technologies Emerging technologies, 2017-04, Vol.77, p.161-184
Main Authors: Dixit, Vinayak V., Ortmann, Andreas, Rutström, E. Elisabet, Ukkusuri, Satish V.
Format: Article
Language:English
Subjects:
Driving simulator
Economics
Experimental Economics
External validity
Induced Value Theory
Internal validity
Nationalekonomi
Safety
Traffic equilibrium
Transportation
Travel choices
Virtual reality
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Summary:•The paper critically synthesize experimental designs and best practices.•Experiments can be classified into endogenous and exogenous.•Laboratory experiments are carried out to ensure internal validity of theories.•Field experiments are carried out to test external validity of theories.•Virtual reality experiments provide a high degree of control as well as external context. This paper reviews the preconditions for successful applications of Experimental Economics methods to research on transportation problems, as new transportation and research technologies emerge. We argue that the application of properly designed incentives, the hallmark of Experimental Economics, provides a high degree of experimental control, leading to internal validity and incentive compatibility. Both of these are essential for ensuring that findings generalize to contexts outside the immediate application. New technologies, such as virtual reality simulators, can generate external validity for the experiments by providing realistic contexts. GPS and other tracking technologies, as well as smart phones, smart cards and connected vehicle technologies can allow detailed observations on actions and real-time interactions with drivers in field experiments. Proper application of these new technologies in research requires an understanding of how to maintain a high level of internal validity and incentive compatibility as external validity is increased. In this review of past applications of Experimental Economics to transportation we focus on their success in achieving external and internal validity.
ISSN:0968-090X
1879-2359
1879-2359
DOI:10.1016/j.trc.2017.01.011