The Impact of Information Availability on Destination Choice

F. Combes and André de Palma ()

Journal of Economics & Management Strategy, 2016, vol. 25, issue 3, 678-687

Abstract: Consider a population of agents who choose one among a set of destinations located along a rectilinear road. Each of these destinations has a certain utility, modeled by a random variable. We compare a situation where the agents have to explore the destinations to observe the value of their utilities, to a situation where they know these values beforehand. We show that more information yields a higher welfare to the agents, and also, perhaps counter‐intuitively, higher distance traveled.

Date: 2016
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https://doi.org/10.1111/jems.12152

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Working Paper: The Impact of Information Availability on Destination Choice (2016)
Working Paper: The Impact of Information Availability on Destination Choice (2016)
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