Travel choice inertia: The joint role of risk aversion and learning
Journal of Transport Economics and Policy , Volume 46 - Issue 1 p. 139- 155
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.
|Journal of Transport Economics and Policy|
|Organisation||Department of Business Economics|
Chorus, C.G, & Dellaert, B.G.C. (2012). Travel choice inertia: The joint role of risk aversion and learning. Journal of Transport Economics and Policy, 46(1), 139–155. Retrieved from http://hdl.handle.net/1765/81913