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Travel Choice Inertia: The Joint Role of Risk Aversion and Learning

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  • Chorus, C.G.
  • Dellaert, B.G.C.

Abstract

This paper shows how travellers that are faced with a series of risky choices become behaviourally inert due to a combination of risk aversion and learning. Our theoretical analyses complement other studies that conceive inertia as resulting from the wish to save cognitive resources. We first present a model of risky travel mode choice. We show that if travellers dislike risk, and part of the quality of travel alternatives is only revealed upon usage, inertia emerges due to a learning-based lock-in effect. We extend our analyses to capture forward-looking behaviour and the provision of travel information.

Suggested Citation

  • Chorus, C.G. & Dellaert, B.G.C., 2010. "Travel Choice Inertia: The Joint Role of Risk Aversion and Learning," ERIM Report Series Research in Management ERS-2010-040-MKT, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
    • Handle: RePEc:ems:eureri:21097
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    Cited by:

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    2. Maria Fernanda Guajardo Ortega & Heike Link, 2023. "Estimating Mode Choice Inertia and Price Elasticities after a Price Intervention – Evidence from Three Months of almost Fare-free Public Transport in Germany," Discussion Papers of DIW Berlin 2052, DIW Berlin, German Institute for Economic Research.
    3. de Haas, M.C. & Scheepers, C.E. & Harms, L.W.J. & Kroesen, M., 2018. "Travel pattern transitions: Applying latent transition analysis within the mobility biographies framework," Transportation Research Part A: Policy and Practice, Elsevier, vol. 107(C), pages 140-151.
    4. Qi, Hang & Jia, Ning & Qu, Xiaobo & He, Zhengbing, 2023. "Investigating day-to-day route choices based on multi-scenario laboratory experiments, Part I: Route-dependent attraction and its modeling," Transportation Research Part A: Policy and Practice, Elsevier, vol. 167(C).
    5. Chen, Kang & Chen, Dongxu & Sun, Xueshan & Yang, Zhongzhen, 2016. "Container Ocean-transportation System Design with the factors of demand fluctuation and choice inertia of shippers," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 95(C), pages 267-281.
    6. Yan, Xiang & Zhao, Xilei & Han, Yuan & Hentenryck, Pascal Van & Dillahunt, Tawanna, 2021. "Mobility-on-demand versus fixed-route transit systems: An evaluation of traveler preferences in low-income communities," Transportation Research Part A: Policy and Practice, Elsevier, vol. 148(C), pages 481-495.
    7. Xie, Chi & Liu, Zugang, 2014. "On the stochastic network equilibrium with heterogeneous choice inertia," Transportation Research Part B: Methodological, Elsevier, vol. 66(C), pages 90-109.
    8. Sun, Mingmei, 2023. "A day-to-day dynamic model for mixed traffic flow of autonomous vehicles and inertial human-driven vehicles," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 173(C).
    9. Hongli Xu & Hai Yang & Jing Zhou & Yafeng Yin, 2017. "A Route Choice Model with Context-Dependent Value of Time," Transportation Science, INFORMS, vol. 51(2), pages 536-548, May.

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    More about this item

    Keywords

    choice inertia; travel behaviour;

    JEL classification:

    • C44 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Operations Research; Statistical Decision Theory
    • M - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics
    • M31 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Marketing

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