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

Caspar Chorus and Benedict Dellaert

ERIM Report Series Research in Management from Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam

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.

Keywords: choice inertia; travel behaviour (search for similar items in EconPapers)
JEL-codes: C44 M M31 (search for similar items in EconPapers)
Date: 2010-10-20
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Citations: View citations in EconPapers (1)

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Journal Article: Travel Choice Inertia: The Joint Role of Risk Aversion and Learning (2012)
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Persistent link: https://EconPapers.repec.org/RePEc:ems:eureri:21097

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