A flexible model structure approach for discrete choice models

Multi-dimensional discrete choice problems are usually estimated by assuming a single-choice hierarchical order for the entire study population or for pre-defined segments representing the behavior of an “average” person and by indicating either limited differences or a variety in choices among the study population. This study develops an integral methodological framework, termed the flexible model structure (FMS), which enhances the application of the discrete choice model by developing an optimization algorithm that segment given data and searches for the best model structure for each segment simultaneously. The approach is demonstrated here through three models that conceptualize the multi-dimensional discrete choice problem. The first two are Nested Logit models with a two-choice dimension of destination and mode; they represent the estimation of a fixed-structure model using pre-segmented data as is mostly common in multi-dimensional discrete choice model implementation. The third model, the FMS, includes a fuzzy segmentation method with weighted variables, as well as a combination of more than one model structure estimated simultaneously. The FMS model significantly improves estimation results, using fewer variables than do segmented NL models, thus supporting the hypothesis that different model structures may best describe the behavior of different groups of people in multi-dimensional choice models. The implementation of FMS involves presenting the travel behavior of an individual as a mix of travel behaviors represented by a number of segments. The choice model for each segment comprises a combination of different choice model structures. The FMS model thus breaks the consensus that an individual belongs to only one segment and that a segment can take only one structure.     

Inferring attribute non-attendance from stated choice data: implications for willingness to pay estimates and a warning for stated choice experiment design

There is a growing interest in traveller behaviour research to explore alternative information processing strategies (often referred to as heuristics or rules) adopted by individuals when assessing packages of attributes describing alternatives in a choice set, and making a choice. One popular attribute processing rule relates to attributes not being considered (i.e., being ignored), for all manner of reasons, referred to in the small but growing literature as attribute non-attendance or non-preservation. Researchers have used a mixture of methods to study the role of attribute non-attendance, including supplementary questions on whether each attribute is ignored or not, and methods in which the functional form of the utility expressions defining an alternative can recognise the possibility, up to a probability, of an attribute being ignored. Although supplementary questions are worthy of further consideration, despite the controversy as to the reliability of the response, recent interest has focused on ways to establish the incidence of attribute non-attendance without recourse to such evidence. In this paper we use an existing data set of choice amongst four attributes describing alternative car non-commuting trips, to illustrate the proposed method, and to compare values of travel time savings under each possible combination of non-attendance attributes relative to a model in which all attributes are assumed to be fully attended to. The paper reveals a major concern with the way that attribute levels and ranges are selected in the design of choice experiments, which can induce non-attendance situations where willingness to pay estimates cannot be obtained.     

Boundedly rational route choice behavior: A review of models and methodologies

Perfect rationality (PR) has been widely used in modeling travel behavior. As opposed to PR, bounded rationality (BR) has recently regained researchers’ attention since it was first introduced into transportation science in the 1980s due to its power in more realistic travel behavior modeling and prediction. This paper provides a comprehensive survey on the models of BR route choice behavior, aiming to identify current research gaps and provide directions for future research. Despite a small but growing body of studies on employing bounded rationality principle, BR route choice behavior remains understudied due to the following reasons: (a) The existence of BR thresholds leads to mathematically intractable properties of equilibria; (b) BR parameters are usually latent and difficult to identify and estimate; and (c) BR is associated with human being’s cognitive process and is challenging to model. Accordingly, we will review how existing literature addresses the aforementioned challenges in substantive and procedural bounded rationality models. Substantive bounded rationality models focus on choice outcomes while procedural bounded rationality models focus on the empirical studies of choice processes. Bounded rationality models in each category can be further divided based on whether time dimension is included. Accordingly, static and dynamic traffic assignment are introduced in substantive bounded rationality while two-stage cognitive models and day-to-day learning models in procedural bounded rationality are discussed. The methodologies employed in substantive bounded rationality include game theory and interactive congestion game, while those in procedural bounded rationality mainly adopt random utility and non- or semi-compensatory models. A comparison of all existing methodologies are given and bounded rationality models’ scope and boundaries in terms of predictability, transferability, tractability, and scalability are discussed. Finally existing research gaps are presented and several promising future research directions are given.     

The influence of (toll-related) travel costs in residential location decisions of households: A stated choice approach

In this paper, we investigate the impact of travel costs, in particular toll costs, on the residential location choice of households, using a stated choice survey. Within the stated choice experiment, car drivers that frequently face traffic congestion, traded-off several trip-related (including toll costs) and house/location-related factors in their decision where to locate. If we look at the influence of different variables, toll and fuel costs seem to be important. Respondents are more sensitive to travel costs (i.e. toll and fuel costs) than to equally high (monthly) housing costs. Travel time appears to play a less important role, as indicated by a low value of time (VOT). In addition, location-related factors, such as the type of location and the number of bedrooms, turn out to be important factors as well. It can be concluded that respondents generally speaking prefer to pay higher housing costs and accept longer travel times to avoid (high) travel costs. Finally, if we look at the difference in preferences in relation to toll and fuel cost, we can conclude that toll costs are valued more negatively than fuel costs, although the differences are small.     

Non-linear utility functions in models of travel choice behavior

Models of individual choice behavior have been extensively developed and used in travel prediction during the last ten years. These models are generally formulated with utility functions that are linear in parameters. Theories of economics and psychology suggest that the true relationship between service variables and utility is non-linear. In this paper we demonstrate that non-linear transformations of time and cost variables produce statistically significant improvements in the model estimated, have a theoretically appealing interpretation, and lead to managerially important differences in policy evaluations. These results support the need to refine the specification of choice utility functions based on theoretical considerations and empirical research.     

Modeling heterogeneous risk-taking behavior in route choice: A stochastic dominance approach

This paper proposes a unified approach to modeling heterogonous risk-taking behavior in route choice based on the theory of stochastic dominance (SD). Specifically, the first-, second-, and third-order stochastic dominance (FSD, SSD, TSD) are respectively linked to insatiability, risk-aversion and ruin-aversion within the framework of utility maximization. The paths that may be selected by travelers of different risk-taking preferences can be obtained from the corresponding SD-admissible paths, which can be generated using general dynamic programming. This paper also analyzes the relationship between the SD-based approach and other route choice models that consider risk-taking behavior. These route choice models employ a variety of reliability indexes, which often make the problem of finding optimal paths intractable. We show that the optimal paths with respect to these reliability indexes often belong to one of the three SD-admissible path sets. This finding offers not only an interpretation of risk-taking behavior consistent with the SD theory for these route choice models, but also a unified and computationally viable solution approach through SD-admissible path sets, which are usually small and can be generated without having to enumerate all paths. A generic label-correcting algorithm is proposed to generate FSD-, SSD-, and TSD-admissible paths, and numerical experiments are conducted to test the algorithm and to verify the analytical results.     

A nonparametric approach to the incorporation of heterogeneity into repeated polytomous choice models of urban shopping behaviour

Longitudinal discrete choice models which use a mixing distribution to control for unobserved heterogeneity, and which are estimated by a nonparametric maximum likelihood mass point procedure, have so far been restricted to the analysis of dichotomous choices. This paper extends mass point methods to the case of polytomous choice problems and in so doing makes an important contribution to the analysis of longitudinal data and dynamic discrete choice models. The paper concludes with an empirical assessment of the performance of mass point methods in the analysis of urban shopping behaviour, using short-term panel data from the Cardiff Consumer Panel.     

A stated preference examination of time of travel choice for a recreational trip

A stated preference experiment was performed in Calgary in Canada to examine how people are influenced in the selection of a departure time for a hypothetical trip to see a movie. A total of 635 complete observations were obtained. In each observation the respondent was presented with a set of possible departure time scenarios and asked to indicate the order of preference for these scenarios. Each scenario was described by specifying the automobile travel time, the expected arrival time relative to the movie start time, the parking cost, the probability of being at least ten minutes late for the movie and the length of time the movie had been running. This forced the respondent to trade off between conditions regarding these attributes. Age, gender and frequency of movie attendance were also recorded. The observations thus obtained were used to estimate the parameter values for a range of alternative utility functions in logit models representing this choice behaviour. The results indicate that all of the attributes included have significant effects on departure time choice in the situation being considered. They also indicate that travellers are prepared to arrive roughly two minutes early for each minute of travel time saved; that the money value of driving time for trips to recreational activities is about half that for trips to work; that one additional percent in the probability of arriving late is equivalent to roughly 0.20 Canadian dollars or 1.93 minutes drive time; and that there is a preference for a non-zero expected early arrival time regardless of the associated probability of arriving late. Some of these results are novel and others are consistent with findings for work trips in work done by others, which is seen to add credence to the approach being used here.     

The acquisition of pre-trip information: A stated preference approach

This paper describes a study into the effects of pre-trip information on travel behaviour, carried out as part of the DRIVE project EURONETT. The aim of the study was to investigate travellers' requirements for different types of travel information and methods of enquiry and to relate the process of information acquisition to changes in travel behaviour. The study was carried out using a stated preference approach, built on the use of a microcomputer based simulation of an in-home pre-trip information system offering information on travel times from home to City Centre, by bus and car, at different times of the day. A novel feature of the stated preference exercise was that respondents effectively generated their own choice set of alternatives through the process of information acquisition. Surveys were undertaken in parallel in Birmingham and Athens, thus allowing a comparison to be made between behaviour in typical Southern and Northern European settings.The first part of the paper discusses some of the fundamental behavioural and modelling issues raised by the introduction of advanced traveller information systems. It then describes the study methodology and the stated preference experiment. Results are presented from an analysis of the information acquisition process itself and from choice models relating the acquired information to effects on different dimensions of travel behaviour.     

Intercity rail services: A nested logit stated choice analysis of pricing options

There is a renewed interest in intercity and long-distance rail services in many countries, with both new high-speed rail services and improvements to conventional rail under review. The current study reports on an investigation using a stated choice experiment, of the demand for sleeper services between Sydney, Northern New South Wales (NSW) and Brisbane in Australia, a 12 to 14 hour trip, just after a decision by the NSW government to temporarily suspend sleeper services and introduce seating service only, pending an inquiry into the demand for such loss-making services under alternative price and service levels. A matrix of direct fare elasticities within the rail mode and between rail and competing modes are obtained for concession and non-concession travellers from a nested logit model. The empirical evidence extends our knowledge of the sensitivity of the long distance passenger market to a range of rails fares, distinguishing between classes of fares and levels of service.     

Willingness-to-pay for alternative fuel vehicle characteristics: A stated choice study for Germany

In the light of European energy efficiency and clean air regulations, as well as an ambitious electric mobility goal of the German government, we examine consumer preferences for alternative fuel vehicles (AFVs) based on a Germany-wide discrete choice experiment among 711 potential car buyers. We estimate consumers’ willingness-to-pay and compensating variation (CV) for improvements in vehicle attributes, also taking taste differences in the population into account by applying a latent class model with 6 distinct consumer segments. Our results indicate that about 1/3 of the consumers are oriented towards at least one AFV option, with almost half of them being AFV-affine, showing a high probability of choosing AFVs despite their current shortcomings. Our results suggest that German car buyers’ willingness-to-pay for improvements of the various vehicle attributes varies considerably across consumer groups and that the vehicle features have to meet some minimum requirements for considering AFVs. The CV values show that decision-makers in the administration and industry should focus on the most promising consumer group of ‘AFV aficionados’ and their needs. It also shows that some vehicle attribute improvements could increase the demand for AFVs cost-effectively, and that consumers would accept surcharges for some vehicle attributes at a level which could enable their private provision and economic operation (e.g. fast-charging infrastructure). Improvement of other attributes will need governmental subsidies to compensate for insufficient consumer valuation (e.g. battery capacity).     

A methodological approach for developing and assessing business models for flexible transport systems

Flexible transport services include a wide range of demand responsive transport systems that provide non-conventional passenger and freight transportation services. Several alternative business models varying according to the local market conditions, the socio-economic, legal, and institutional framework may be developed for the provision of Flexible Transport Systems (FTS). The objective of this paper is twofold: first to present an integrated methodological framework for developing and assessing alternative FTS business models and second to demonstrate its applicability to a case study regarding the prioritization of alternative FTS business models for the provision of flexible passenger transport services in Helsinki.

Structural equation approach to investigate trip-chaining and mode choice relationships in the context of developing countries

This paper investigates empirical relationships between trip chain type and mode class choice for developing countries. To formulate these two sets of decisions, four empirical models are developed using structural equation modeling (SEM). Those models are calibrated using one-month travel diary data collected in Dhaka city. SEM correlates the observed variables and identifies their relationship with trip-chaining type utility and mode class choice utility. The fitted models are selected based on statistical results and similarity with the real-life situation. Direct relationships between trip-chaining and mode choice utilities are found insignificant. However, several socio-demographic factors influence both simultaneously. Consequently, it is essential to consider mode class choice concurrently for modeling trip chains. This study also investigates the influencing factors for work-based and non-work-based trip chains separately and effects of road users’ heterogeneity. The research results can be utilized to perceive trip chain-mode choice patterns for developing countries.     

Extending stated choice analysis to recognise agent-specific attribute endogeneity in bilateral group negotiation and choice: a think piece

This paper is a think piece on variations in the structure of stated preference studies when modelling the joint preferences of interacting agents who have the power to influence the attribute levels on offer. The approach proposed is an extension of standard stated choice methods, known as ‘stated endogenous attribute level’ (SEAL) analysis. It allows for interactive agents to adjust attribute levels off a base stated choice specification that are within their control, in an effort to reach agreement in an experimental setting. This accomplishes three goals: (1) the ability to place respondents in an environment that more closely matches interactive settings in which some attribute levels are endogenous to a specific agent, should the modeller wish to capture such behaviour; (2) the improved ability of the modeller to capture the behaviour in such settings, including a greater wealth of information on the related interaction processes, rather than simply outcomes; and (3) the expansion of the set of situations that the modeller can investigate using experimental data.

Capturing tour mode and activity choice interdependencies: A co-evolutionary logit modelling approach

It is generally assumed that the choice of transport mode and the choice of including intermediate activities on a work tour are interrelated, but little is known about the nature of the causal relationship. To shed light on this, this paper addresses the question of whether transport mode choice is dependent on the activity choice or vice-versa. A new methodology, referred to as the co-evolutionary approach, is combined with a set of MNL models, one for each choice facet involved, to derive an indication of the order of decisions on an individual level. The models are estimated based on the work tours of a large sample of individuals in the Netherlands. The results suggest that there is substantial variation in the order of the transport mode and activity decisions. However, in the majority of cases the activity decision is made before the mode decision, suggesting that the transport mode and, in particular, the choice between car and public transport is most often ‘adjusted’ to the choice of trip chaining rather than the other way round.     

Interactive stated choice surveys: a study of air travel behaviour

Stated preference (SP) experiments are becoming an increasingly popular survey methodology for investigating travel behaviour. Nevertheless, some evidence suggests that SP experiments do not mirror decisions in real markets. With an increasing number of real world decisions made using the internet, an opportunity exists to improve the realism of the SP counterparts of such choices by aligning the choice environment with such online portals. In this paper, we illustrate the benefits of such an approach in the context of air travel surveys. Our survey is modelled on the interface and functionality of an online travel agent (OTA). As with a real OTA, many ticket options are presented. Sort tools allow the options to be reordered, search tools allow options to be removed from consideration, and a further tool allows attributes to be hidden and shown. Extensive use of these tools is made by the 462 respondents. A traditional SP component was also completed by the respondents. Our exploratory analysis as well as random utility model estimation results confirm not only that respondents seem to engage more actively with the interactive survey, but also that the resulting data allows for better performance in model estimation compared to a more conventional SP experiment. These results have implications for the study of other complex travel choices where interactive surveys may similarly be preferable to standard approaches.     

Online and in-store purchase behavior: shopping channel choice in a developing economy

Transportation - Developing economies are still in the stage of e-commerce deployment, unlike in developed countries, where online shopping is already a common purchase channel. This research aims...     

A stated preference examination of time of travel choice for a recreational trip: An addendum

A paper was published in the immediately previous issue of this journal describing a stated preference experiment examining how people are influenced in the selection of a departure time for a hypothetical trip to see a movie. The title was ‘A stated preference examination of time of travel choice for a recreational trip’, Volume 30(3):17–44. Numbers were used to indicate references in the text of the paper and in Table 1 accompanying the text, but these numbers were omitted from the list of references at the end of the paper - making it very difficult to identify specific citations. The list of references from the paper is reprinted below with the reference numbers included. This provides a listing that can be used in conjunction with the text of the paper and Table 1 as published to identify specific citations as intended.     

Evaluation of activity constrained choice sets to shopping destination choice modelling

Recent research indicates that the constraints on an individual's freedom to move through space and time, have an important influence on his likelihood to participate in various activities, and on the amount of time he budgets to them. To date, commonly used transportation planning processes have failed to incorporate the time budget concept into the various planning and policy evaluation stages. It seems as well, that one of the drawbacks of the disaggregate modelling process is its neglect of the effect of temporal constraints on an individual's choice process. The temporal constraints affect the size of choice sets of individuals and thus influence the probabilities of selection of the available alternatives. The core of this paper is to demonstrate how individual specific constraint choice sets can be defined in a destination choice model, and how they can be applied for improving accuracy in prediction. Emphasis is placed on the additional capabilities provided by the incorporation of the choice set definitions, both in terms of improved prediction accuracy, and in terms of evaluating policies, which affect the constraints on activity scheduling. A model is developed which uses knowledge concerning the constraints on shopping travel to generate choice sets of retail locations for consumers. This is done by calculating the maximum amounts of time which these constraints allow an individual to be at various retail outlets. Locations which cannot be reached while open are removed from the choice set. This model was applied to data from the Tel Aviv Metropolitan Area. The results show that applying choice set restrictions yields a modest improvement in the accuracy of prediction of shopping destination choice. Exploratory analyses indicate that by further restricting choice sets in an appropriate amnner, it may be possible to achieve substantial improvement in prediction accuracy.     

Estimation of switching models from revealed preferences and stated intentions

This paper proposes a methodology for modeling switching behavior using simultaneously cross-sectional revealed preference (RP) data and stated intentions, a type of stated preference (SP) data. With explicit consideration of biases and random errors potentially contained in SP data, combined estimation with RP and SP data can exploit the advantages of both data sources. An empirical analysis of commuters' mode choice shows that the stated intention data have predictive validity if their biases and errors are properly corrected.