A comprehensive dwelling unit choice model accommodating psychological constructs within a search strategy for consideration set formation

This study adopts a dwelling unit level of analysis and considers a probabilistic choice set generation approach for residential choice modeling. In doing so, we accommodate the fact that housing choices involve both characteristics of the dwelling unit and its location, while also mimicking the search process that underlies housing decisions. In particular, we model a complete range of dwelling unit choices that include tenure type (rent or own), housing type (single family detached, single family attached, or apartment complex), number of bedrooms, number of bathrooms, number of storeys (one or multiple), square footage of the house, lot size, housing costs, density of residential neighborhood, and commute distance. Bhat’s (2015) generalized heterogeneous data model (GHDM) system is used to accommodate the different types of dependent outcomes associated with housing choices, while capturing jointness caused by unobserved factors. The proposed analytic framework is applied to study housing choices using data derived from the 2009 American Housing Survey (AHS), sponsored by the Department of Housing and Urban Development (HUD) and conducted by the U.S. Census Bureau. The results confirm the jointness in housing choices, and indicate the superiority of a choice set formation model relative to a model that assumes the availability of all dwelling unit alternatives in the choice set.     

Macroscopic location models revisited

Recent developments in residential location choice models have considered the individual as the basic unit of analysis and have attempted to model the actual choice process used by individuals in selecting residential location sites. This paper demonstrates that the choice model derived from these studies is a more general form of many macroscopic models of location used in the past. The prime difference between the two classes of model is seen to be the much wider range of factors and geographic settings which can be accounted for in disaggregate behavioural models of residential location choice.     

Residential mobility and location choice: a nested logit model with sampling of alternatives

Residential mobility and relocation choice are essential parts of integrated transportation and land use models. These decision processes have been examined and modeled individually to a great extent but there remain gaps in the literature on the underlying behaviors that connect them. Households may partly base their decision to move from or stay at a current location on the price and quality of the available alternatives. Conversely, households that are on the market for a new location may evaluate housing choices relative to their previous residence. How and the degree to which these decisions relate to each other are, however, not completely understood. This research is intended to contribute to the body of empirical evidence that will help answer these questions. It is hypothesized that residential mobility and location choice are related household decisions that can be modeled together using a two-tier hierarchical structure. This paper presents a novel nested logit (NL) model with sampling of alternatives and a proposed procedure for sampling bias correction. The model was estimated using full-information maximum likelihood estimation methods. The results confirm the applicability of this NL model and support similar findings from other empirical studies in the residential mobility and location choice literature.     

Modeling interdependencies between vehicle transaction,residential relocation and job change

This paper introduces a vehicle transaction timing model which is conditional on household residential and job relocation timings. Further, the household residential location and members’ job relocation timing decisions are jointly estimated. Some researchers have modeled the household vehicle ownership decision jointly with other household decisions like vehicle type choice or VMT; however, these models were basically static and changes in household taste over time has been ignored in nearly all of these models. The proposed model is a dynamic joint model in which the effects of land-use, economy and disaggregate travel activity attributes on the major household decisions; residential location and members’ job relocation timing decisions for wife and husband of the household, are estimated. Each of these models is estimated using both the Weibull and log-logistic baseline hazard functions to assess the usefulness of a non-monotonic rather than monotonic baseline hazard function. The last three waves of the Puget Sound Panel Survey data and land-use, transportation, and built environment variables from the Seattle Metropolitan Area are used in this study as these waves include useful explanatory variables like household tenure that were not included in the previous waves.     

Household travel attributes transferability analysis: application of a hierarchical rule based approach

This paper presents a system of hierarchical rule-based models of trip generation and modal split. Travel attributes, like trip counts for different transportation modes and commute distance, are among the modeled variables. The proposed framework could be considered as an alternative for several modules of the traditional travel demand modeling approach, while providing travel attributes at the highly disaggregate level that can be also used in activity-based micro-simulation modeling systems. Nonetheless, the modeling framework of this study is not considered as a substitute for activity-based models. The explanatory variables set ranges from socio-economic and demographic attributes of the household to the built environment characteristics of the household residential location. Another important contribution of the study is a framework in which travel attributes are modeled in conjunction with each other and the interdependencies among them are postulated through a hierarchical system of models. All the models are developed using rule-based decision tree method. Moreover, the models developed in this study present a useful improvement in increasing the practicality and accuracy of the rule-based travel data simulation models.     

Estimating choice probabilities among nested alternatives

In several travel choice situations (e.g. automobile ownership level and trip frequency) the alternatives available to an individual randomly chosen from the population exhibit some internal choice-related ranking: the choice of a given alternative implies that all lower-ranked alternatives have been chosen. Such alternatives are referred to as “nested”. This paper presents a model for estimating choice probabilities among nested alternatives. The model is devised from the well known logit model and uses existing logit maximum-likelihood estimation techniques (and computer packages). The approach is shown to be more attractive than the multinomial logit and linear regression models, from a theoretical point of view, yet cheaper than the multinomial probit model. The model is developed in a disaggregate, utility maximization framework. An example application, estimating probabilities of trip frequencies by elderly individuals is presented.     

Assessing traveler responsiveness to land and location based accessibility and mobility solutions

In this paper, a joint multinomial logit (MNL) model of residential location and vehicle availability choice is formulated and estimated using a sample of households from the San Francisco, CA area Metropolitan Transportation Commission's 1990 household travel survey. Subsequently, models of travel intensity (number of daily household trips and vehicle-miles traveled) are estimated as a function of household characteristics and of attributes derived from the joint residential location and auto availability choice model (number of vehicles, percent land developed). A policy test shows that reducing the cost of locating in the densest areas of the metropolitan area is likely to have only marginal impact on vehicle availability and household trip making.     

A note on consistency of choice units in entropy models

In using entropy maximization models to forecast locational and travel behaviour, one is confronted with the problem of delineating the choice process as precisely as possible. In addition to defining a fine-grain choice structure implying individuals seeking distinct location sites within residential zones and travelling to distinct jobs or shops within destination zones, this note also accounts for the fact that the location choice is of a site for a household or firm, but the corresponding travel choices are by individual members of a household. In conjunction with disaggregation across quantities with large variance, the above principles are applied to formulate improved versions of residential and shopping location models.     

A methodological framework for the study of residential location and travel-to-work mode choice under central and suburban employment destination patterns

The aim of this paper is to contribute to the methodological questions that arise from the study of the simultaneous choice of residential location and travel-to-work mode under central and non-central or suburban employment patterns. Geographic information system (GIS) visualisations and network analysis are used to generate a choice set based on the definition of spatially aggregated alternatives. Discrete choice models specified as cross-nested logit (CNL) are estimated for each of the two different types of employment patterns and direct and cross elasticities are presented. The analysis is carried out for the Greater Dublin Area, a metropolitan region that is a recent example of rapid employment suburbanisation and residential sprawl in a European context. A simulation exercise, tracing the extent of mode switching and location switching behaviour is undertaken using the framework developed.     

The transaction cost approach to modeling the demand for automobiles

The purchase of an automobile involves significant transaction costs in addition to the purchase price. Therefore, the assumptions implied by static car holding models are invalid. This paper describes a dynamic approach to the modeling of level-of-ownership and auto-type choice, based on a transaction choice model which utilizes information on past car ownership. The cost or disutility of a transaction depends on the attributes of the household and the purchased car, as well as on past car-ownership characteristics. A set of assumptions underlying the incorporation of transaction costs in the model is presented. The paper discusses the econometric implications of omitting the dynamic attributes (i.e., past ownership characteristics). A disaggregate model was estimated, using a choice-based sample consisting of a random sample of households enriched with a sample of households which transacted in the car market during the study period. This sampling method combined with a random choice of a subset of the car alternatives provides for a cost-effective method to estimate a transaction model.     

On activity-based network design problems

This paper examines network design where OD demand is not known a priori, but is the subject of responses in household or user itinerary choices to infrastructure improvements. Using simple examples, we show that falsely assuming that household itineraries are not elastic can result in a lack in understanding of certain phenomena; e.g., increasing traffic even without increasing economic activity due to relaxing of space–time prism constraints, or worsening of utility despite infrastructure investments in cases where household objectives may conflict. An activity-based network design problem is proposed using the location routing problem (LRP) as inspiration. The bilevel formulation includes an upper level network design and shortest path problem while the lower level includes a set of disaggregate household itinerary optimization problems, posed as household activity pattern problem (HAPP) (or in the case with location choice, as generalized HAPP) models. As a bilevel problem with an NP-hard lower level problem, there is no algorithm for solving the model exactly. Simple numerical examples show optimality gaps of as much as 5% for a decomposition heuristic algorithm derived from the LRP. A large numerical case study based on Southern California data and setting suggest that even if infrastructure investments do not result in major changes in link investment decisions compared to a conventional model, the results provide much higher resolution temporal OD information to a decision maker. Whereas a conventional model would output the best set of links to invest given an assumed OD matrix, the proposed model can output the same best set of links, the same daily OD matrix, and a detailed temporal distribution of activity participation and travel from which changes in peak period OD patterns can be observed.     

Identifying a behaviourally relevant choice set from stated choice data

Stated choice experiments are designed optimally in a statistical sense but not necessarily in a behavioural choice making sense. Statistical designs, and consequently model estimation, assume that the set of alternatives offered in the experiment are processed by respondents with a specific processing strategy. Much has been studied about attribute processing using discrete choice methods in travel choice studies, but this paper focuses more broadly on processing of alternatives in the choice set offered in the experiment. This paper is motivated by the primary idea that the distribution of predicted choice probabilities associated with a set of alternatives defining a given choice set might provide strong evidence on the strategies that agents appear to use when choosing a preferred alternative. In an empirical setting of a choice set of size three, four model specifications are considered including a model for the selection of the best alternative in the full choice set and three variants of a best–worst regime. Using state choice data on road pricing reform, the empirical analysis examines which model specification delivers the most accurate prediction of the chosen alternative. The results suggest which alternatives really matter in choice making and hence the alternatives that might be included in a choice set for model specification.     

An application of a rank ordered probit modeling approach to understanding level of interest in autonomous vehicles

Surveys of behavior could benefit from information about people’s relative ranking of choice alternatives. Rank ordered data are often collected in stated preference surveys where respondents are asked to rank hypothetical alternatives (rather than choose a single alternative) to better understand their relative preferences. Despite the widespread interest in collecting data on and modeling people’s preferences for choice alternatives, rank-ordered data are rarely collected in travel surveys and very little progress has been made in the ability to rigorously model such data and obtain reliable parameter estimates. This paper presents a rank ordered probit modeling approach that overcomes limitations associated with prior approaches in analyzing rank ordered data. The efficacy of the rank ordered probit modeling methodology is demonstrated through an application of the model to understand preferences for alternative configurations of autonomous vehicles (AV) using the 2015 Puget Sound Regional Travel Study survey data set. The methodology offers behaviorally intuitive model results with a variety of socio-economic and demographic characteristics, including age, gender, household income, education, employment and household structure, significantly influencing preference for alternative configurations of AV adoption, ownership, and shared usage. The ability to estimate rank ordered probit models offers a pathway for better utilizing rank ordered data to understand preferences and recognize that choices may not be absolute in many instances.     

Modeling residential sorting effects to understand the impact of the built environment on commute mode choice

This paper presents an examination of the significance of residential sorting or self selection effects in understanding the impacts of the built environment on travel choices. Land use and transportation system attributes are often treated as exogenous variables in models of travel behavior. Such models ignore the potential self selection processes that may be at play wherein households and individuals choose to locate in areas or built environments that are consistent with their lifestyle and transportation preferences, attitudes, and values. In this paper, a simultaneous model of residential location choice and commute mode choice that accounts for both observed and unobserved taste variations that may contribute to residential self selection is estimated on a survey sample extracted from the 2000 San Francisco Bay Area household travel survey. Model results show that both observed and unobserved residential self selection effects do exist; however, even after accounting for these effects, it is found that built environment attributes can indeed significantly impact commute mode choice behavior. The paper concludes with a discussion of the implications of the model findings for policy planning.

A comprehensive analysis of household transportation expenditures relative to other goods and services: an application to United States consumer expenditure data

This paper proposes a multiple discrete continuous nested extreme value (MDCNEV) model to analyze household expenditures for transportation-related items in relation to a host of other consumption categories. The model system presented in this paper is capable of providing a comprehensive assessment of how household consumption patterns (including savings) would be impacted by increases in fuel prices or any other household expense. The MDCNEV model presented in this paper is estimated on disaggregate consumption data from the 2002 Consumer Expenditure Survey data of the United States. Model estimation results show that a host of household and personal socio-economic, demographic, and location variables affect the proportion of monetary resources that households allocate to various consumption categories. Sensitivity analysis conducted using the model demonstrates the applicability of the model for quantifying consumption adjustment patterns in response to rising fuel prices. It is found that households adjust their food consumption, vehicular purchases, and savings rates in the short run. In the long term, adjustments are also made to housing choices (expenses), calling for the need to ensure that fuel price effects are adequately reflected in integrated microsimulation models of land use and travel.     

Sampling of alternatives in Multivariate Extreme Value (MEV) models

We propose a methodology to achieve consistency, asymptotic normality and efficiency, while sampling alternatives in Multivariate Extreme Value (MEV) models, extending a previous result for Logit. We illustrate the methodology and study the finite sample properties of the estimators using Monte Carlo experimentation and real data on residential location choice from Lisbon, Portugal. Experiments show that the proposed methodology is practical, that it outperforms the uncorrected model, and that it yields acceptable results, even for relatively small samples of alternatives. The paper finishes with a synthesis and an analysis of the impact, limitations and potential extensions of this research.     

Implicit choice set generation in discrete choice models: Application to household auto ownership decisions

Latent choice set models that account for probabilistic consideration of choice alternatives during decision making have long existed. The Manski model that assumes a two-stage representation of decision making has served as the standard workhorse model for discrete choice modeling with latent choice sets. However, estimation of the Manski model is not always feasible because evaluation of the likelihood function in the Manski model requires enumeration of all possible choice sets leading to explosion for moderate and large choice sets. In this study, we propose a new group of implicit choice set generation models that can approximate the Manski model while retaining linear complexity with respect to the choice set size. We examined the performance of the models proposed in this study using synthetic data. The simulation results indicate that the approximations proposed in this study perform considerably well in terms of replicating the Manski model parameters. We subsequently used these implicit choice set models to understand latent choice set considerations in household auto ownership decisions of resident population in the Southern California region. The empirical results confirm our hypothesis that certain segments of households may only consider a subset of auto ownership levels while making decisions regarding the number of cars to own. The results not only underscore the importance of using latent choice models for modeling household auto ownership decisions but also demonstrate the applicability of the approximations proposed in this study to estimate these latent choice set models.     

An empirical comparison of travel choice models that capture preferences for compromise alternatives

Compromise alternatives have an intermediate performance on each or most attributes rather than having a poor performance on some attributes and a strong performance on others. The relative popularity of compromise alternatives among decision-makers has been convincingly established in a wide range of decision contexts, while being largely ignored in travel behavior research. We discuss three (travel) choice models that capture a potential preference for compromise alternatives. One approach, which is introduced in this paper, involves the construction of a so-called compromise variable which indicates to what extent (i.e., on how many attributes) a given alternative is a compromise alternative in its choice set. Another approach consists of the recently introduced random regret-model form, where the popularity of compromise alternatives emerges endogenously from the regret minimization-based decision rule. A third approach consists of the contextual concavity model, which is known for favoring compromise alternatives by means of a locally concave utility function. Estimation results on a stated route choice dataset show that, in terms of model fit and predictive ability, the contextual concavity and random regret models appear to perform better than the model that contains an added compromise variable.