Some Aspects of the Market for Broadcast Traffic Information

In recent years, planners have looked toward traffic information systems as an immediate solution to the congestion on U.S. highways. ITS systems are low-cost relative to many alternatives, and simple implementation allows for quick results. Alongside these investments has been research investigating the use of information systems by drivers and the results to be expected. Many studies have shown that the primary source of information for drivers has been broadcast systems such as the radio (e.g. Yim et al., 1997). Additional research has addressed other media which are used to transmit information to its users, yet little has been presented toward the development of economic models to represent the behavior of the providers of broadcast information. This paper will serve as an attempt to fill that gap.