Travel Choice Inertia: The Joint Role of Risk Aversion and Learning

Caspar Chorus and Benedict Dellaert

Journal of Transport Economics and Policy, 2012, vol. 46, issue 1, 139-155

Abstract: This paper shows how travellers that are faced with a series of risky choices become behaviourally inert due to a combination of risk aversion and learning. Our theoretical analyses complement other studies that conceive inertia as resulting from the wish to save cognitive resources. We first present a model of risky travel mode choice. We show that if travellers dislike risk, and part of the quality of travel alternatives is only revealed upon usage, inertia emerges due to a learning-based lock-in effect. We extend our analyses to capture forward-looking behaviour and the provision of travel information. © 2012 LSE and the University of Bath

Date: 2012
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Working Paper: Travel Choice Inertia: The Joint Role of Risk Aversion and Learning (2010)
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Persistent link: https://EconPapers.repec.org/RePEc:tpe:jtecpo:v:46:y:2012:i:1:p:139-155

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