You are thinking about traveling to visit friends in Atlanta. You can fly or take the bus. A round-trip plane ticket costs $300, and it takes 3 hours one way to get from your house to your friend’s house if you fly. A round-trip bus ticket costs $150, and it takes 10 hours one way using the bus. What is the value of your time necessary to induce you to buy the plane ticket instead of taking the bus?

Question

You are thinking about traveling to visit friends in Atlanta. You can fly or take the bus. A round-trip plane ticket costs $300, and it takes 3 hours one way to get from your house to your friend’s house if you fly. A round-trip bus ticket costs $150, and it takes 10 hours one way using the bus.   What is the value of your time necessary to induce you to buy the plane ticket instead of taking the bus?