TY - JOUR
T1 - Travel time variability and rational inattention
AU - Fosgerau, Mogens
AU - Jiang, Gege
PY - 2019/2/1
Y1 - 2019/2/1
N2 - This paper sets up a rational inattention model for the choice of departure time for a traveler facing random travel time. In this model, the traveler chooses in advance an information strategy for the travel time outcome, and then chooses departure time each day given the information received that day. The model describes how cheaper information allows the traveler to expand his/her consideration set and adapt more flexibly to changing conditions. This increases the traveler's payoff. The marginal cost of travel time variability is always positive. The ability to choose the information strategy reduces the cost of travel time variability compared to neoclassical travelers whose information is exogenously given.
AB - This paper sets up a rational inattention model for the choice of departure time for a traveler facing random travel time. In this model, the traveler chooses in advance an information strategy for the travel time outcome, and then chooses departure time each day given the information received that day. The model describes how cheaper information allows the traveler to expand his/her consideration set and adapt more flexibly to changing conditions. This increases the traveler's payoff. The marginal cost of travel time variability is always positive. The ability to choose the information strategy reduces the cost of travel time variability compared to neoclassical travelers whose information is exogenously given.
KW - Discrete choice
KW - Random travel time variability
KW - Rational inattention
KW - Value of reliability
UR - http://www.scopus.com/inward/record.url?scp=85058779797&partnerID=8YFLogxK
U2 - 10.1016/j.trb.2018.12.003
DO - 10.1016/j.trb.2018.12.003
M3 - Journal article
AN - SCOPUS:85058779797
SN - 0191-2615
VL - 120
SP - 1
EP - 14
JO - Transportation Research Part B: Methodological
JF - Transportation Research Part B: Methodological
ER -