Understanding the willingness to switch to autonomous vehicles

Amid rapidly evolving artificial intelligence technology and rising demand for more efficient transport networks around the globe, the implementation of autonomous vehicles (AVs) is no longer a matter of “if”, but “when”. However, there has been a lack of research on how different behavioural biases might affect one’s willingness to switch (WTS) from human operated vehicles (HOVs) to AV technology. Thus, this paper analyses a subset of these behavioural biases, namely loss aversion, driver overconfidence and technology acceptance, and their effect on one’s WTS using multiple price lists and an ordered logit regression model. The effects of different informational nudges on influencing WTS, specifically those relating to the benefits of using AVs, cons of using HOVs and developments and initiatives in AV technology, were also compared and evaluated using the signed test and Mann-Whitney U test. Overall, loss aversion and technology acceptance were found to be statistically significant in determining an individual’s WTS, but there was a lack of evidence to suggest the same for driver overconfidence. Results from the treatment analysis suggest that nudges pertaining to the advancements and local initiatives of AVs as well as the benefits of AVs are effective in influencing one’s WTS. On the other hand, nudges relating to the cons of HOVs were inadequate in encouraging people to switch to AVs. This study provides valuable insight into the type of information that policymakers and companies should emphasise on when encouraging the switch to AVs.Bachelor of Science in Mathematics and Economic