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An Exploration of the Market for Traffic Information

Author

Listed:
  • Chan, Shirley
  • Malchow, Matthew
  • Kanafani, Adib

Abstract

Since traffic information is indirectly priced and experiences significant economies-of-scale, it can not be described by the classic demand model normally used to explain most goods. Therefore, this report focuses on the derivation of a demand model that describes the supply and cost mechanisms influencing the market for traffic information. This study includes a discussion of the history of the market, its economies-of-scale, and its potential for future development. In addition, recent developments of value-added-resellers, the differences which exist in the marketing of their products, and some factors influencing their success in the market for traffic information will also be discussed. Several suggestions for both the commercial broadcast stations and the public agencies that aim to maximize the total benefits of traffic information are presented.

Suggested Citation

  • Chan, Shirley & Malchow, Matthew & Kanafani, Adib, 1997. "An Exploration of the Market for Traffic Information," University of California Transportation Center, Working Papers qt2j1347d4, University of California Transportation Center.
  • Handle: RePEc:cdl:uctcwp:qt2j1347d4
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    References listed on IDEAS

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    1. Polydoropoulou, A. & Ben-akiva, M. & Khattak, A. & Lauprete, G., 1996. "Commuters' Normal And Shift Decisions In Unexpected Congestion: En Route Responses To Advanced Traveler Information Systems Volume 2," Institute of Transportation Studies, Research Reports, Working Papers, Proceedings qt9zg797p5, Institute of Transportation Studies, UC Berkeley.
    2. Malchow, M. & Kanafani, A. & Varaiya, P., 1997. "Modeling The Behavior Of Traffic Information Providers," Institute of Transportation Studies, Research Reports, Working Papers, Proceedings qt38p572vt, Institute of Transportation Studies, UC Berkeley.
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    Cited by:

    1. Yim, Y. B., 2001. "ATIS -- Alternative Revenue Approaches," Institute of Transportation Studies, Research Reports, Working Papers, Proceedings qt4w71c1rs, Institute of Transportation Studies, UC Berkeley.

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