INFORMATION VALUE AND SEQUENTIAL DECISION-MAKING IN A TRANSPORT SETTING: AN EXPERIMENTAL STUDY

This paper builds an analytical model of information value for transportation choice where decision-making is dynamic and information is not free. Information value is the highest price an individual is willing to pay for information, and the amount usually increases as information becomes more specific. Applying experimental economics, an experimental game has been constructed in which individuals choose between alternative congested transportation modes to try to arrive at a destination at a specified time. To reduce the risk associated with modal choice, each subject can buy information about traffic levels. Two information messages are offered one after the other, with the second giving more information. Results show that the value individuals ascribe to information in this context and the price of information and infrastructure capacities vary. Individuals compare the utility of information to its cost. This calculation is an important part of the comparison between risk with regard to travel time and the monetary travel cost. Findings also show that individuals choose to buy information when the variance of payoffs for the chosen route is sufficiently high. The economic model of dynamic choice is shown to provide a reasonable approximation of individual values. In particular, the willingness to pay for more detailed information is higher than for more general information. The paper also contributes to the application of experimental economics as a rigorous data production method for testing theoretical models dealing with travel behavior.

• Record URL:
  • http://www.sciencedirect.com/science/article/B6V99-45XTP5J-1/2/9f1cebbfa7df64f9a4e1f455bf208779
• Availability:
  • Find a library where document is available. Order URL: http://worldcat.org/issn/01912615
• Corporate Authors:

  Elsevier

  The Boulevard, Langford Lane
  Kidlington, Oxford  United Kingdom  OX5 1GB
• Authors:
  • DENANT-BOEMONT, L
  • Petiot, R
• Publication Date: 2003-5

Language

• English

Media Info

• Features: Appendices; Figures; References; Tables;
• Pagination: p. 365-386
• Serial:
  • Transportation Research Part B: Methodological
  • Volume: 37
  • Issue Number: 4
  • Publisher: Elsevier
  • ISSN: 0191-2615
  • Serial URL: http://www.sciencedirect.com/science/journal/01912615

Subject/Index Terms

• TRT Terms: Choice models; Costs; Decision making; Economic models; Mode choice; Traffic congestion; Travel time
• Uncontrolled Terms: Information value; Willingness-to-pay
• Subject Areas: Economics; Finance; Highways; Planning and Forecasting; Safety and Human Factors; Society; I72: Traffic and Transport Planning;

Filing Info

• Accession Number: 00941191
• Record Type: Publication
• Files: TRIS, ATRI
• Created Date: Apr 17 2003 12:00AM