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The Impact of Information Availability on Destination Choice

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  • A. de Palma

    (ENS Cachan - École normale supérieure - Cachan, CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique)

  • François P. A. Combes

    (Cerema Direction Ouest - Centre d'Etudes et d'Expertise sur les Risques, l'Environnement, la Mobilité et l'Aménagement - Direction Ouest - Cerema - Centre d'Etudes et d'Expertise sur les Risques, l'Environnement, la Mobilité et l'Aménagement)

Abstract

Consider a population of agents who choose one among a set of destinations located along a rectilinear road. Each of these destinations has a certain utility, modeled by a random variable. We compare a situation where the agents have to explore the destinations to observe the value of their utilities, to a situation where they know these values beforehand. We show that more information yields a higher welfare to the agents, and also, perhaps counter-intuitively, higher distance traveled.

Suggested Citation

  • A. de Palma & François P. A. Combes, 2016. "The Impact of Information Availability on Destination Choice," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-01311122, HAL.
  • Handle: RePEc:hal:cesptp:hal-01311122
    DOI: 10.1111/jems.12152
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    References listed on IDEAS

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    Keywords

    information; destination choice;

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