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The Impact of Information Availability on Destination Choice
Author(s) -
Combes F.,
De Palma A.
Publication year - 2015
Publication title -
journal of economics and management strategy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.672
H-Index - 68
eISSN - 1530-9134
pISSN - 1058-6407
DOI - 10.1111/jems.12152
Subject(s) - destinations , population , variable (mathematics) , set (abstract data type) , value (mathematics) , value of information , welfare , choice set , computer science , tourist destinations , microeconomics , business , operations research , econometrics , geography , economics , mathematics , tourism , demography , artificial intelligence , mathematical analysis , archaeology , machine learning , sociology , market economy , programming language
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.