Developing ERP in Indonesia: Investigating Social Interaction on Driver’s Decisions in Electronic Road Pricing

Abstrak

Road pricing is one of important policy in regulating road usage in urban area. Road pricing have been using cost
of production, externalities, and optimization scheme to construct appropriate price to nudge driver’s travel
behavior. Social interaction in transportation argued have influence the behavior of decision maker, especially
in route choice. This research aimed to inference social interaction in travel behavior in Indonesia using ERP as
study context. Experimental economics was employed to mimic driver’s state of preference when they
commute. Result showed that social interaction on interdependence level significantly drive driver’s route
choice to use ERP.