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Route choice, travel time variability, and rational inattention

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  • Jiang, Gege
  • Fosgerau, Mogens
  • Lo, Hong

Abstract

This paper sets up a rational inattention model for the route choice problem in a stochastic network where travelers face random travel time. Previous research has assumed that travelers incorporate all provided information without effort. This study assumes that information is costly and that travelers rationally choose how much information to acquire prior to choosing route. We begin with a single traveler and then extend the model to heterogeneous travelers where rationally inattentive user equilibrium (RIUE) is achieved. From the perspective of a single traveler, more information always reduces the impact of travel time variability and increases the probability of choosing a less costly route. However, in RIUE, more information may reduce the social welfare in some scenarios.

Suggested Citation

  • Jiang, Gege & Fosgerau, Mogens & Lo, Hong, 2020. "Route choice, travel time variability, and rational inattention," MPRA Paper 99944, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:99944
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    References listed on IDEAS

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    Cited by:

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    4. Zhaoqi Zang & Xiangdong Xu & Kai Qu & Ruiya Chen & Anthony Chen, 2022. "Travel time reliability in transportation networks: A review of methodological developments," Papers 2206.12696, arXiv.org, revised Jul 2022.
    5. Mai, Tien & Yu, Xinlian & Gao, Song & Frejinger, Emma, 2021. "Routing policy choice prediction in a stochastic network: Recursive model and solution algorithm," Transportation Research Part B: Methodological, Elsevier, vol. 151(C), pages 42-58.
    6. Chen, Xin & Jiang, Yu & Bláfoss Ingvardson, Jesper & Luo, Xia & Anker Nielsen, Otto, 2023. "I can board, but I’d rather wait: Active boarding delay choice behaviour analysis using smart card data in metro systems," Transportation Research Part A: Policy and Practice, Elsevier, vol. 174(C).
    7. Roy Allen & John Rehbeck, 2021. "A Generalization of Quantal Response Equilibrium via Perturbed Utility," Games, MDPI, vol. 12(1), pages 1-16, March.
    8. Knies, Austin & Lorca, Jorge & Melo, Emerson, 2022. "A recursive logit model with choice aversion and its application to transportation networks," Transportation Research Part B: Methodological, Elsevier, vol. 155(C), pages 47-71.

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    More about this item

    Keywords

    Rational inattention; Travel time variability; Imperfect information; Information strategy; Discrete choice;
    All these keywords.

    JEL classification:

    • D8 - Microeconomics - - Information, Knowledge, and Uncertainty
    • R4 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics

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