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Information And Usage Of Free-Access Congestible Facilities

Author

Listed:
  • Richard Arnott

    (Department of Economics, Boston College)

  • Andre De Palma

    (University of Geneva)

  • Robin Lindsey

    (University of Alberta)

Abstract

We investigate the effect of information on participation and time of use decisions in a free access congestible facility subject to fluctuations in capacity and demand. Expected welfare is greater with perfect than with zero information, while optimal design capacity is greater if and only if demand elasticity is greater than one. Imperfect information can reduce welfare by inducing concentration in the arrival times of users at the facility. This suggests that information dissemination schemes such as advanced traveler information systems for automobile travel should be designed and implemented with care.

Suggested Citation

  • Richard Arnott & Andre De Palma & Robin Lindsey, 1993. "Information And Usage Of Free-Access Congestible Facilities," Boston College Working Papers in Economics 238, Boston College Department of Economics.
    • Handle: RePEc:boc:bocoec:238
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    Cited by:

    1. André de Palma & Robin Lindsey & Nathalie Picard, 2012. "Risk Aversion, the Value of Information, and Traffic Equilibrium," Transportation Science, INFORMS, vol. 46(1), pages 1-26, February.
    2. André De Palma & Nathalie Picard, 2005. "Congestion on risky routes with risk adverse drivers," ERSA conference papers ersa05p423, European Regional Science Association.

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