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Congestion Information and Eciency: An Experiment

Author

Listed:
  • Charles N. Noussair
  • Liang Qiao

Abstract

Users are now typically able to access historical data in traffic, restaurant, and retailing contexts. This availability of information can be viewed as a means to reduce congestion. However, scientific support for this notion is weak. We investigate, using a laboratory experiment, whether an intermediate level of information provision might reduce congestion. We also study how the effect of making more information available changes over time. We show that providing all users with information is counterproductive in the short run. In the long run, users\' behavior adjusts so that providing some or all individuals with information leads to more efficient outcomes than when no information is made available. The incidence of group over-and under-reaction to congestion cost differences is only mildly responsive to the information level, a pattern consistent with Small Sample models, which do not assume sequential adjustment.

Suggested Citation

  • Charles N. Noussair & Liang Qiao, 2025. "Congestion Information and Eciency: An Experiment," Experimental Economics Center Working Paper Series 2025-05, Experimental Economics Center, Andrew Young School of Policy Studies, Georgia State University.
    • Handle: RePEc:exc:wpaper:2025-05
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    File URL: http://excen.gsu.edu/workingpapers/GSU_EXCEN_WP_2025-05.pdf
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    Keywords

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    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness

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