The Impact of Information Availability on Destination Choice

10 Pages Posted: 20 Jul 2016

See all articles by F. Combes

F. Combes

French Expertise and Study Center for Risks, Environment, Mobility and Planning (CEREMA)

André de Palma

Ecole Normale Supérieure de Cachan

Date Written: Fall 2016

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.

Suggested Citation

Combes, F. and de Palma, André, The Impact of Information Availability on Destination Choice (Fall 2016). Journal of Economics & Management Strategy, Vol. 25, Issue 3, pp. 678-687, 2016, Available at SSRN: https://ssrn.com/abstract=2811925 or http://dx.doi.org/10.1111/jems.12152

F. Combes (Contact Author)

French Expertise and Study Center for Risks, Environment, Mobility and Planning (CEREMA) ( email )

Ile, 77487
France

André De Palma

Ecole Normale Supérieure de Cachan ( email )

61 Avenue du President Wilson
94235 Cachan
France
33688714344 (Phone)

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