California Partners for Advanced Transportation Technology

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.