01475770

Component

This paper shows how the co-existence of different decision rules can be accommodated in hybrid discrete choice-models. Specifically, the paper presents a generic hybrid model specification that allows for some attributes being processed using conventional linear-additive utility-maximization based rules, while others are being processed using regret-minimization based rules. The authors show that on two revealed and stated choice datasets hybrid models outperform – in terms of model fit – choice models where all attributes are assumed to be processed by means of one and the same decision rule. However, on the data differences between models are very small. Implications, in terms of marginal Willingness-to-Pay measures (WtP), are derived for the different hybrid model-specifications and applied in the context of the two datasets. It is found that in the context of the data hybrid WtP-measures differ substantially from conventional utility-based WtP-measures, and that the hybrid WtP-specifications allow for a richer, because choice set-specific, interpretation of the trade-offs that people make.

This paper was sponsored by TRB committee ADB40 Transportation Demand Forecasting.

01470560

13-0085

English

22p

2013

Transportation Research Board 92nd Annual Meeting

Digital/other

Figures; References; Tables

Alternatives analysis; Choice models; Empirical methods; Utility theory

Discrete choice models; Hybrid models; Random regret minimization; Random utility models; Willingness to pay

Highways; Planning and Forecasting; Public Transportation; I71: Traffic Theory

Transportation Research Board Annual Meeting 2013 Paper #13-0085

TRIS, TRB, ATRI

Feb 5 2013 12:11PM