Travel time variability and rational inattention

Fosgerau, Mogens and Jiang, Gege (2017): Travel time variability and rational inattention.

Abstract

This paper sets up a rational inattention model for the choice of departure time for a traveler facing random travel time. The traveler chooses how much information to acquire about the travel time outcome before choosing departure time. This reduces the cost of travel time variability compared to models in which the information is exogenously fixed.

• Item Type: MPRA Paper
• Language: English
• Keywords: rational inattention; random travel time variability; value of reliability; discrete choice
• Subjects: D - Microeconomics > D1 - Household Behavior and Family Economics; D - Microeconomics > D8 - Information, Knowledge, and Uncertainty; R - Urban, Rural, Regional, Real Estate, and Transportation Economics > R4 - Transportation Economics

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