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Title:

Simplified Two-Stage Choice Set Formation Models Incorporating Observed Choice Set Data

Accession Number:

01476805

Record Type:

Component

Availability:

Transportation Research Board Business Office

500 Fifth Street, NW
Washington, DC 20001 United States

Abstract:

The implementation of a theoretically sound, two-stage discrete-choice modelling paradigm incorporating probabilistic choice sets is impractical when the number of alternatives is large, which is a typical case in most spatial choice contexts. In the context of residential location choice, Kaplan, Bekhor and Shiftan (2009, 2011, 2012) (KBS) developed a semi-compensatory choice model incorporating data of individuals searching for dwellings observed using a customised real estate agency website. This secondary data is used to compute the probability of considering a choice set that takes the form of an ordered probit model. In this paper, we illustrate that the simplicity of the KBS model arises because of an unrealistic assumption that individuals’ choice sets only contain alternatives that derive from their observed combination of thresholds. Relaxing this assumption, we introduce a new probabilistic choice set formation model that allows the power set to include all potential choice sets derived from variations in thresholds’ combinations. In addition to extending the KBS model, our proposed model asymptotically approaches the classical Manski model, if a suitable structure is used to categorize alternatives. In order to illustrate the biases inherent in the original KBS approach, we compare it with our proposed model and the MNL model using a Monte Carlo experiment. The results of this experiment show that the KBS model causes biases in predicted market share if individuals are free to choose from any potential choice sets derived from combinations of thresholds.

Supplemental Notes:

This paper was sponsored by TRB committee ABJ80 Statistical Methods.

Monograph Accession #:

01470560

Report/Paper Numbers:

13-3870

Language:

English

Corporate Authors:

Transportation Research Board

500 Fifth Street, NW
Washington, DC 20001 United States

Authors:

Zolfaghari, Alireza
Sivakumar, Aruna
Polak, John W

Pagination:

16p

Publication Date:

2013

Conference:

Transportation Research Board 92nd Annual Meeting

Location: Washington DC, United States
Date: 2013-1-13 to 2013-1-17
Sponsors: Transportation Research Board

Media Type:

Digital/other

Features:

Figures; References; Tables

Subject Areas:

Data and Information Technology; Highways; Planning and Forecasting; I70: Traffic and Transport; I72: Traffic and Transport Planning

Source Data:

Transportation Research Board Annual Meeting 2013 Paper #13-3870

Files:

TRIS, TRB, ATRI

Created Date:

Feb 5 2013 12:45PM