Route choice, travel time variability, and rational inattention

Gege Jiang, Mogens Fosgerau and Hong Lo

MPRA Paper from University Library of Munich, Germany

Abstract: This paper sets up a rational inattention model for the route choice problem in a stochastic network where travelers face random travel time. Previous research has assumed that travelers incorporate all provided information without effort. This study assumes that information is costly and that travelers rationally choose how much information to acquire prior to choosing route. We begin with a single traveler and then extend the model to heterogeneous travelers where rationally inattentive user equilibrium (RIUE) is achieved. From the perspective of a single traveler, more information always reduces the impact of travel time variability and increases the probability of choosing a less costly route. However, in RIUE, more information may reduce the social welfare in some scenarios.

Keywords: Rational inattention; Travel time variability; Imperfect information; Information strategy; Discrete choice (search for similar items in EconPapers)
JEL-codes: D8 R4 (search for similar items in EconPapers)
Date: 2020
New Economics Papers: this item is included in nep-mic, nep-net, nep-ore, nep-tre and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (13)

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Journal Article: Route choice, travel time variability, and rational inattention (2020)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:99944

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