Travel Choice Inertia: The Joint Role of Risk Aversion and Learning
AbstractThis paper shows how travellers that are faced with a series of risky choices become behaviourally inert due to a combination of risk aversion and learning. Our theoretical analyses complement other studies that conceive inertia as resulting from the wish to save cognitive resources. We first present a model of risky travel mode choice. We show that if travellers dislike risk, and part of the quality of travel alternatives is only revealed upon usage, inertia emerges due to a learning-based lock-in effect. We extend our analyses to capture forward-looking behaviour and the provision of travel information. © 2012 LSE and the University of Bath
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Bibliographic InfoArticle provided by London School of Economics and University of Bath in its journal Journal of Transport Economics and Policy (JTEP).
Volume (Year): 46 (2012)
Issue (Month): 1 (January)
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Web page: http://www.bath.ac.uk/e-journals/jtep
Other versions of this item:
- Chorus, C.G. & Dellaert, B.G.C., 2010. "Travel Choice Inertia: The Joint Role of Risk Aversion and Learning," ERIM Report Series Research in Management ERS-2010-040-MKT, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus Uni.
- C44 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Operations Research; Statistical Decision Theory
- M - Business Administration and Business Economics; Marketing; Accounting
- M31 - Business Administration and Business Economics; Marketing; Accounting - - Marketing and Advertising - - - Marketing
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