The impact of information availability on destination choice

• Autores: F. Combes, André de Palma
• Localización: Journal of Economics & Management Strategy, ISSN-e 1530-9134, Vol. 25, Nº. 3, 2016, págs. 678-687
• Idioma: inglés
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• Resumen

  • 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.