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Arnott, Richard
Year of Publication: 
Series/Report no.: 
Discussion Paper No. 974
We investigate the effect of information about congestion on participation and time-of-use decisions in a free-access delay system subject to predictable and unpredictable fluctuations in capacity and demand intensity. Expected welfare is greater with perfect than with zero information, while optimal design capacity is greater if and only if demand elasticity is less than one. Imperfect information can reduce welfare by inducting concentration in the arrival time of users at the facility. This suggests that route guidance systems for automobile travel and other public information dissemination schemes must be designed and implemented with care.
Document Type: 
Working Paper

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