The value of travel information: Decision strategy-specific conceptualizations and numerical examples

In order to clarify the important mechanisms behind these formulations, and provide some first face validity to the applied approaches, numerical examples are developed that simulate the value of information for different knowledge levels of the individual, and for different levels of reliability of the information service.

Abstract

Behavioral models of the perceived value of travel information are developed that take into account satisficing as well as maximizing behavior, and are suitable for the evaluation of information acquisition for alternative generation as well as assessment. This is done by integrating notions of search theory and Bayesian perception updating into a utilitarian framework of information value. In order to clarify the important mechanisms behind these formulations, and provide some first face validity to the applied approaches, numerical examples are developed that simulate the value of information for different knowledge levels of the individual, and for different levels of reliability of the information service. The examples indeed provide preliminary confidence, as occurring trends appear to be consistent with intuition and empirical literature.