On the Role of Information in the Subjective Valuation of Time



On the Role of Information in the Subjective Valuation of Time

Authors

TUDELA A M, Universidad de Concepcion, Chile

Description

Information has been signalled as an important aspect in the decision making process. Wrong decisions might be due to some imbalance in the information level, affecting the decision makers' judgement. Besides, imperfect information is one of the well-know

Abstract

Information has been signalled as an important aspect in the decision making process. Wrong decisions might be due to some imbalance in the information level, affecting the decision makers' judgement. Besides, imperfect information is one of the well-known market failures, driving markets out of an efficient resource allocation. This failure in information, known as information asymmetry, can affect producers as well as consumers, and be originated by both.

This paper deals with the fact that individual decision process is actually affected by asymmetric information when making a decision about mode choice. This failure of information drives people onto an inefficient decision path. These biased individual decisions also affect the decision process related to transport planning, making it possible that the whole system goes into an erroneous path of development.

On the basis of a micro economic approach, and some elements related to environmental economics, it is shown that individual decisions might be affected by asymmetric information, leading people to biased decisions, and affecting the decision making process as a whole. A prospective empirical analysis is also provided to reinforce the theoretical aspects.

The next chapter contains a review of the role of information in the decision making process, whereas chapter 3 deals with the micro economic approach to analyse the problem. Empirical results are shown in chapter 4, whilst main conclusions are drawn in the last chapter.

Publisher

Association for European Transport