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Travel Choice Inertia: The Joint Role of Risk Aversion and Learning

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  • Caspar G. Chorus
  • Benedict G. C. Dellaert

Abstract

This 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

Suggested Citation

  • Caspar G. Chorus & Benedict G. C. Dellaert, 2012. "Travel Choice Inertia: The Joint Role of Risk Aversion and Learning," Journal of Transport Economics and Policy, University of Bath, vol. 46(1), pages 139-155, January.
  • Handle: RePEc:tpe:jtecpo:v:46:y:2012:i:1:p:139-155
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    1. repec:eee:transa:v:107:y:2018:i:c:p:140-151 is not listed on IDEAS
    2. Chen, Kang & Chen, Dongxu & Sun, Xueshan & Yang, Zhongzhen, 2016. "Container Ocean-transportation System Design with the factors of demand fluctuation and choice inertia of shippers," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 95(C), pages 267-281.
    3. Xie, Chi & Liu, Zugang, 2014. "On the stochastic network equilibrium with heterogeneous choice inertia," Transportation Research Part B: Methodological, Elsevier, vol. 66(C), pages 90-109.

    More about this item

    JEL classification:

    • C44 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Operations Research; Statistical Decision Theory
    • M - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics
    • M31 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Marketing

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