Travel Time Variability and Rational Inattention
25 Pages Posted: 25 Oct 2017
Date Written: October 24, 2017
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: Suggested Citation