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Urban Transportation Mode Choice and Trip Complexity: Bicyclists Stick to Their Gears

Commuters' lives have become more complicated with rising income. In my model, transportation mode choices are made simultaneously with the choice of whether to make multiple stops. Using travel behavior data, I estimate the model using an error components logit (ECL) specification to account for commuters' unobserved preferences for particular modes and find that omitting unobserved preferences underestimates value of travel time relative to the crossing‐components ECL. The estimated model predicts that increased trip complexity causes substitution away from public transit to automobiles, with the exception that bicyclists transition only to more complex trips and do not change transportation modes. (JEL R41, C25)