Pii: S0968-090x(02)00023-2

Over the next few years, driver behavior should become more informed with the advent and deployment of in-vehicle navigation systems. This paper analyzes systems that provide the driver the fastest path between his or her current location and final destination, updated in real-time to consider recurring and nonrecurring congestion. The traveler s full cost per trip is a bundle comprised of both expected travel time and its reliability. This paper explores these topics from a theoretical economic perspective and then simulates stylized cases. Simulation results indicate that typical information benefits are at a maximum on the precipice of congestion, when vehicles are arriving at a rate of 95% of the capacity, while non-recurring congestion benefits are much greater. 2002 Elsevier Science Ltd. All rights reserved.