This paper discusses two primary models which might be used to represent the locational behavior of traffic information providers. The characteristics which make traffic information unique as a service good are discussed and exploited in the models to show how the behavior of information providers might differ from that of firms in a traditional market. Questions are addressed regarding the clustering of competing providers and the efficiency of resulting output. The purpose of this paper is to contribute to a study regarding the future of the traffic information industry and the role of public financing versus private competition.
