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Endogenous Demand for Motorist Information

In: Information and Pricing in Road Transportation

Author

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  • Richard H. M. Emmerink

    (Free University)

Abstract

In Chapters 5 and 6, it was assumed that the number of informed and uninformed drivers is exogenously determined. It is more realistic to assume that there are costs associated with motorist information. Costs, which may, for instance, reflect the price of the necessary information technology equipment. In this manner, the choice of being informed is modelled endogenously in the present chapter. Hence, an actor in the present chapter does not only decide on whether or not to use the transport network, but also decides upon whether or not to buy the information on the traffic situation. Clearly, an actor will buy the information only if the private benefits of being informed at least exceed the private costs of doing so.

Suggested Citation

  • Richard H. M. Emmerink, 1998. "Endogenous Demand for Motorist Information," Advances in Spatial Science, in: Information and Pricing in Road Transportation, chapter 7, pages 111-127, Springer.
    • Handle: RePEc:spr:adspcp:978-3-642-72143-4_7
    DOI: 10.1007/978-3-642-72143-4_7
    as

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