Journal Articles Journal of Economics and Management Strategy Year : 2016

The Impact of Information Availability on Destination Choice

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.

Dates and versions

hal-01311122 , version 1 (03-05-2016)

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A. de Palma, François P. A. Combes. The Impact of Information Availability on Destination Choice. Journal of Economics and Management Strategy, 2016, pp.Early View. ⟨10.1111/jems.12152⟩. ⟨hal-01311122⟩
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