INFORMATION PROVISION IN ROAD TRANSPORT WITH ELASTIC DEMAND. A WELFARE ECONOMIC APPROACH. IN: TRANSPORT AND INFORMATION SYSTEMS

The aim of this paper is to enhance insight into the welfare economic effects of information provision to a group of drivers, and to gain insights into the mechanisms affecting the impact of providing information. This is done by theoretically analyzing the impact of information provision on network efficiency. In addition, the equity aspects of information provision are considered by answering questions related to this topic. A static economic equilibrium model is presented, allowing for elastic demand. An increasing cost curve represents the costs for travel. The elasticity of demand distinguishes this approach from the existing literature on information provision. The paper concludes with comments and suggested future directions for research.

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