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dc.contributor.authorClark, Derek John
dc.contributor.authorMathisen, Terje Andreas
dc.date.accessioned2020-08-18T11:14:05Z
dc.date.available2020-08-18T11:14:05Z
dc.date.issued2020-08-04
dc.description.abstractPsychologists have long since recognized that consumers have limited cognitive ability, and that this prevents them from weighing up all product attributes when making a choice. More recently, a new framework for consumer choice has been developed which takes account of this, by assuming that consumers are drawn to salient features of a product. We apply the framework of salient thinking to a simple transport market in which passengers may attach different weights to the utility of the trip (its comfort and/or duration) and the fare. We find the optimal fare structure in this market, and investigate under which conditions operators use their pricing schedule to focus passengers’ attention on fare, and when they direct attention towards trip duration or comfort. Furthermore, we address the quality investments made by operators compared to a rational benchmark. Quality enhancement in this model is increasing in the unit cost of providing the service. We finally discuss the implications of the theory of consumer choice, and the competitive model for transport markets compared to the predictions of a rational model. This leads to several testable situations which could give implications for policy makers and transport firms.en_US
dc.identifier.citationClark DJ, Mathisen T. Salience in a simple transport market. Research in Transportation Economics. 2020;82en_US
dc.identifier.cristinIDFRIDAID 1821490
dc.identifier.doihttps://doi.org/10.1016/j.retrec.2020.100876
dc.identifier.issn0739-8859
dc.identifier.issn1875-7979
dc.identifier.urihttps://hdl.handle.net/10037/19014
dc.language.isoengen_US
dc.publisherElsevieren_US
dc.relation.journalResearch in Transportation Economics
dc.rights.accessRightsopenAccessen_US
dc.rights.holderCopyright 2020 The Author(s)en_US
dc.subjectVDP::Social science: 200en_US
dc.subjectVDP::Samfunnsvitenskap: 200en_US
dc.titleSalience in a simple transport marketen_US
dc.type.versionpublishedVersionen_US
dc.typeJournal articleen_US
dc.typeTidsskriftartikkelen_US
dc.typePeer revieweden_US


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