A prospect theoretical choice model incorporating profitable and punctual uncertainties: an investigation in the participation of private car sharing

Abstract

This study aims to examine people’s propensity to share private cars between peers accounting for the potential impacts of uncertainties underlying the sharing profit and vehicle returns. A mixed logit prospect theoretical model is developed to estimate the effects of uncertain variables and examine the unobserved heterogeneity using the data collected through a stated choice experiment in Hiroshima City, Japan. Results show that car owners are generally sensitive to the gains and losses for the revenue and the time of delayed returns, and people respond to uncertain situations differently. Individual participation in private car sharing is significantly influenced by the choices made by different social group members like family/relatives and friends/colleagues. These insights on individuals participation mechanism are helpful for service operators to promote the market share of private car sharing.