Travel Time Variability and Rational Inattention

25 Pages Posted: 25 Oct 2017

See all articles by Mogens Fosgerau

Mogens Fosgerau

University of Copenhagen

Gege Jiang

Hong Kong University of Science & Technology (HKUST) - Department of Civil Engineering

Date Written: October 24, 2017

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 out-come before choosing departure time. This reduces the cost of travel time variability compared to models in which the information is exogenously fixed.

Keywords: rational inattention; random travel time variability; value of reliability; discrete choice

JEL Classification: D1, D8, R4

Suggested Citation

Fosgerau, Mogens and Jiang, Gege, Travel Time Variability and Rational Inattention (October 24, 2017). Available at SSRN: https://ssrn.com/abstract=3058834 or http://dx.doi.org/10.2139/ssrn.3058834

Mogens Fosgerau (Contact Author)

University of Copenhagen ( email )

University of Copenhagen, Building 26
Ă˜ster Farimagsgade 5
Copenhagen K., DK-1353
Denmark

Gege Jiang

Hong Kong University of Science & Technology (HKUST) - Department of Civil Engineering ( email )

Hong Kong

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