Route choice, travel time variability, and rational inattention

Jiang, Gege; Fosgerau, Mogens; Lo, Hong Kam

doi:10.1016/j.trb.2019.05.020

Cited by 34 publications

(7 citation statements)

References 40 publications

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“…At the same time, some voters are highly 40 See also Maccuish (2019) who develops a life-cycle model with RI, with a focus on the retirement decision and an application to UK data. 41 See also Jiang et al (2020) who use RI to study to a route choice problem that travelers face.…”

Section: Political Economymentioning

confidence: 99%

Rational Inattention: A Review

Maćkowiak

Matějka

Wiederholt

2023

Journal of Economic Literature

131

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We review the recent literature on rational inattention, identify the main theoretical mechanisms, and explain how it helps us understand a variety of phenomena across fields of economics. The theory of rational inattention assumes that agents cannot process all available information, but they can choose which exact pieces of information to attend to. Several important results in economics have been built around imperfect information. Nowadays, many more forms of information than ever before are available due to new technologies, and yet we are able to digest little of it. Which form of imperfect information we possess and act upon is thus largely determined by which information we choose to pay attention to. These choices are driven by current economic conditions and imply behavior that features numerous empirically supported departures from standard models. Combining these insights about human limitations with the optimizing approach of neoclassical economics yields a new, generally applicable model. (JEL D83, D91, E71)

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Section: Political Economymentioning

confidence: 99%

Rational Inattention: A Review

Maćkowiak

Matějka

Wiederholt

2023

Journal of Economic Literature

131

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“…In relation to the acquisition of information before or during the travel, individuals are not willing to select a route with high predicted cost of travel, ignoring the chances of taking the route with the shortest travel distance ( 4 ). Commuters tend to rely totally on information provided by navigation systems only for completely unknown destinations.…”

Section: Literature Reviewmentioning

confidence: 99%

Evidence from Highway Drivers in Greece Showing Toll Avoidance and Utility of Alternative Routes

Politis

Kyriakoglou

Georgiadis

et al. 2020

Transportation Research Record: Journal of the Transportation R

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Road tolling plays a significant role on highways’ financial sustainability since it consists the major revenue source. This paper aims to examine the factors that affect the drivers’ route choice and urge them to avoid toll roads when an alternative toll-free route is available. The paper presents the results of a case study that is dealing with the issue of toll avoidance at the last non-privatized highway of Greece, the Egnatia Odos (EO) road. Data from a combined revealed and stated preference survey were collected and binary choice models were built for car and truck drivers so as to determine the utility of alternative routes. The results show that travel cost and toll fees are critical route choice criteria for car drivers, while travel time is a key decision factor for truck drivers. The high safety standards for the toll route were appreciated by both categories of drivers. Additional trip and personal characteristics, such as gender, trip frequency, type of transported cargo, and total trip length also affect drivers’ choices. The elasticity of travel time and cost was estimated to shed light on drivers’ sensitiveness to the route attributes and it was found that truck drivers’ choices are greatly influenced by their working time schedules. These findings highlight the key factors that influence the utility of toll roads and therefore could assist highway authorities and concessionaires in developing successful toll pricing policies which will not act as a deterrent to the use of highways.

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“…Cominetti et al [49] studied how the limit of certain learning procedures can be represented with entropy costs. Outside of game theory, the Shannon entropy function is used extensively in discrete choice analysis [50], information economics [51], to motivate games with learning [52], and for route choice [53]. The function D E n is concave and continuous, and thus Nash equilibria exist.…”

Section: Entropy Perturbations and Logit Best Responsementioning

confidence: 99%