Accounting for stochastic variables in discrete choice models

The estimation of discrete choice models requires measuring the attributes describing the alternatives within each individual’s choice set. Even though some attributes are intrinsically stochastic (e.g. travel times) or are subject to non-negligible measurement errors (e.g. waiting times), they are usually assumed fixed and deterministic. Indeed, even an accurate measurement can be biased as it might differ from the original (experienced) value perceived by the individual.Experimental evidence suggests that discrepancies between the values measured by the modeller and experienced by the individuals can lead to incorrect parameter estimates. On the other hand, there is an important trade-off between data quality and collection costs. This paper explores the inclusion of stochastic variables in discrete choice models through an econometric analysis that allows identifying the most suitable specifications. Various model specifications were experimentally tested using synthetic data; comparisons included tests for unbiased parameter estimation and computation of marginal rates of substitution. Model specifications were also tested using a real case databank featuring two travel time measurements, associated with different levels of accuracy.Results show that in most cases an error components model can effectively deal with stochastic variables. A random coefficients model can only effectively deal with stochastic variables when their randomness is directly proportional to the value of the attribute. Another interesting result is the presence of confounding effects that are very difficult, if not impossible, to isolate when more flexible models are used to capture stochastic variations. Due the presence of confounding effects when estimating flexible models, the estimated parameters should be carefully analysed to avoid misinterpretations. Also, as in previous misspecification tests reported in the literature, the Multinomial Logit model proves to be quite robust for estimating marginal rates of substitution, especially when models are estimated with large samples.     

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.     

Identifying variations and co-variations in discrete choice models

This study introduces an extended version of a standard multilevel cross-classified logit model which takes co-variations into account, i.e., variations jointly caused by two or more unobserved factors. Whilst focusing on mode choice behavior, this study deals with four different types of variation: spatial variations, inter-individual variations, intra-individual variations and co-variations between inter-individual and spatial variations. Such co-variations represent individual-specific spatial effects, reflecting different responses to the same space among individuals, which may for example be due to differences in their spatial perceptions. In our empirical analysis, we use data from Mobidrive (a continuous six-week travel survey) to clarify the existence of co-variation effects by comparing two models with and without co-variation terms. The results of this analysis indicate that co-variations certainly exist, especially for utility differences in bicycle and public transport use in comparison with car use. We then sequentially introduce four further sets of explanatory variables, examine the sources of behavioral variations and determine what types of influential factors are dominant in mode choice behavior.     

Inclusion of latent variables in Mixed Logit models: Modelling and forecasting

Travel demand models typically use mainly objective modal attributes as explanatory variables. Nevertheless, it has been well known for many years that attitudes and perceptions also influence users’ behaviour. The use of hybrid discrete choice models constitutes a good alternative to incorporate the effect of subjective factors. We estimated hybrid models in a short-survey panel context for data among many alternatives. The paper analyses the results of applying these models to a real urban case study, and also proposes an approach to forecasting using these models. Our results show that hybrid models are clearly superior to even highly flexible traditional models that ignore the effect of subjective attitudes and perceptions.     

Expanding scope of hybrid choice models allowing for mixture of social influences and latent attitudes: Application to intended purchase of electric cars

Recently, policy makers’ expectations about the role of electric cars in reducing emissions have risen substantially. In parallel, academic research on purchase intentions has dramatically increased. Originally, most studies have focused on utility attributes and price. More recently, several hybrid choice models have been estimated to include the impact of attitudes on choice probabilities. In addition, a few studies have caught the attention to social influence. In contributing to this line of research, this paper reports the results of an expanded hybrid choice, which simultaneously estimated all these different effects in a single integrated model of purchase intention. Results indicate that the model performs well. Costs considerations contribute most to the utility of electric cars. Social influence is less important, but there is also evidence that people tend to take it into consideration when there are positive public opinions about electric cars and the market share becomes almost half of friends of their social network. The intention to purchase an electric car is also influenced by attitudes about environmental concerns and technology acceptance.     

Effects of incorporating latent and attitudinal information in mode choice models

Abstract

Hybrid choice modelling approaches allow latent variables in mode choice utility functions to be addressed. However, defining attitude and behavior as latent variables is influenced by the researcher's assumptions. Therefore, it is better to capture the effects of latent behavioral and attitudinal factors as latent variables than defining behaviors and attitudes per se. This article uses a hybrid choice model for capturing such latent effects, which will herein be referred to as modal captivity effects in commuting mode choice. Latent modal captivity refers to the unobserved and apparently unexplained attraction towards a specific mode of transportation that is resulting from latent attitude and behavior of passengers in addition to the urban transportation system. In empirical models, the latent modal captivity variables are explained as functions of different observed variables. Empirical models show significant improvement in fitting observed data as well as improved understanding of travel behavior.     

Development of an indicator to assess the spatial fit of discrete choice models

Discrete choice models are increasingly implemented using geographical data. When this is the case, it may not be sufficient to project market shares accurately, but also to correctly replicate the spatial pattern of choices. Analysts might then be interested in assessing the results of a model’s fit relative to the spatial distribution of the observed responses. While canonical approaches exist for the exploratory spatial analysis of continuous variables, similar tools have not been widely implemented for discrete choice models, where the variable of interest is categorical. For this reason, despite recent progress with spatial models for discrete outcomes, there is still not a simple and intuitive tool to assess the quality of the spatial fit of a discrete choice model. The objective of this paper is to introduce a new indicator of spatial fit that can be applied to the results of discrete choice models. Utility of the indicator is explored by means of numerical experiments and then demonstrated by means of a case study of vehicle ownership in Montreal, Canada.     

Exploring the role of individual attitudes and perceptions in predicting the demand for cycling: a hybrid choice modelling approach

Cycling is often promoted as a means of reducing urban congestion and improving health, social and environmental outcomes. However, the quantification of these potential benefits is not well established. This is due in part to practical difficulties in estimating cycling demand and a lack of sound methodologies to appraise cycling initiatives. In this paper we attempt to address this need by developing predictive models of cycle demand, relative to other transport modes, that capture not only the impacts of observed characteristics such as age and travel time but also the role of attitudes and perceptions. Using data from a stated preference survey, we estimate a hybrid choice model for cycle use that incorporates the role of attitudes towards cycling, perceptions of the image associated with cycling, and the stress arising from safety concerns. Model results indicate that the latent attitudes and perceptions explain an important part of the non-observable utility in a simple multinomial logit choice model. We also demonstrate policy analysis using the hybrid choice model, which allows comparisons of ‘hard’ policies such as the provision of parking facilities against ‘soft’ measures such as cycle promotion schemes.     

Allowing for heterogeneous decision rules in discrete choice models: an approach and four case studies

The study of respondent heterogeneity is one of the main areas of research in the field of choice modelling. The general emphasis is on variations across respondents in relative taste parameters while maintaining the assumption of homogeneous utility maximising decision rules. While recent work has allowed for differences in the utility specification across respondents in the context of looking at heterogeneous information processing strategies, the underlying assumption that all respondents employ the same choice paradigm remains. This is despite evidence in the literature that different paradigms work differently well on given datasets. In this article, we argue that such differences may in fact extend to respondents within a single dataset. We accommodate these differences in a latent class model, where individual classes make use of different underlying paradigms. We present four applications using three different datasets, showing mixtures between “standard” random utility maximisation models and lexicography based models, models with multiple reference points, elimination by aspects models and random regret minimisation models. In each of the case studies, the behavioural mixing model obtains significant gains in fit over the base structure where all respondents are hypothesised to use the same rule. The findings offer important further insights into the behavioural patterns of respondents. There is also evidence that what is retrieved as taste heterogeneity in standard models may in fact be heterogeneity in decision rules.     

Values,attitudes and travel behavior: a hierarchical latent variable mixed logit model of travel mode choice

Values lie at the heart of an individual’s belief system, serving as prototypes from which attitudes and behaviors are subsequently manufactured. Attitudes and behaviors may evolve over time, but values represent a set of more enduring beliefs. This study examines the influence of values on travel mode choice behavior. It is argued that personal values influence individual attitudes towards different alternative attributes, which in turn impact modal choices. Using data from a sample of 519 German commuters drawn from a consumer panel, the study estimates an integrated choice and latent variable model of travel mode choice that allows for hierarchical relationships between the latent variables and flexible substitution patterns across the modal alternatives. Results from the empirical application support the value-attitude-behavior hierarchical model of cognition, and provide insights to planners and policy-makers on how better to sell public transit as a means of travel.     

Estimating commuter mode choice: A discrete choice analysis of the impact of road pricing and parking charges

Automobile use leads to external costs associated with emissions, congestion, noise and other impacts. One option for minimizing these costs is to introduce road pricing and parking charges to reduce demand for single occupant vehicle (SOV) use, while providing improvements to alternatives to encourage mode switching. However, the impact of these policies on urban mode choice is uncertain, and results reported from regions where charging has been introduced may not be transferable. In particular, revealed preference data associated with cost recovery tolls on single facilities may not provide a clear picture of driver response to tolls for demand management. To estimate commuter mode choice behaviour in response to such policies, 548 commuters from a Greater Vancouver suburb who presently drive alone to work completed an individually customized discrete choice experiment (DCE) in which they chose between driving alone, carpooling or taking a hypothetical express bus service when choices varied in terms of time and cost attributes. Attribute coefficients identified with the DCE were used in a predictive model to estimate commuter response to various policy oriented combinations of charges and incentives. Model results suggest that increases in drive alone costs will bring about greater reductions in SOV demand than increases in SOV travel time or improvements in the times and costs of alternatives beyond a base level of service. The methods described here provide an effective and efficient way for policy makers to develop an initial assessment of driver reactions to the introduction of pricing policies in their particular regions.     

Effectiveness of en route traffic information in developing countries using conventional discrete choice and neural‐network models

Providing commuters with traffic information or advising them of alternative routes during traffic incidents can alleviate congestion. For decades, advanced traveler information services (ATIS) have been devised and dedicated to this role. ATIS comprises a wide variety of technologies across the world, including radio traffic information (RTI) advisory service. RTI is common in both developed and developing countries. Although extensive literature and evaluation results of ATISs and RTI are available in developed countries, little attention has been devoted to that in developing countries. This work provides a modeling platform to study drivers' response to en route traffic information provided by Radio‐Payam broadcasting service in Tehran, the capital city of the developing country of Iran. The results are compared with counterpart cases in developed countries. Past studies and this study have employed conventional discrete models for drivers' response, such as ordered logit and ordered probit. This work evaluates the accuracy level of these conventional models in comparison with a developed neural‐network (NN) model, because it has been widely proven that NN models are highly precise. It has also been found that, apart from reliability, the conventional models are within an acceptable level of prediction accuracy compared with the NN models. The results show a high degree of similarities between the case of Tehran and its counterparts in the developing countries. The results also deliver some insights on how to improve or better implement the ATIS technologies. Copyright © 2012 John Wiley & Sons, Ltd.     

Incentivizing alternative fuel vehicles: the influence of transport policies,attitudes and perceptions

This paper aims to evaluate the influence of policies, attitudes and perceptions when incentivizing alternative fuel vehicles. The impact of possible policies such as gasoline taxes increases, purchase price subsidies, tax exemptions, and increases in fuel recharging station availability for alternative fuelled vehicles is evaluated using hybrid choice models. The models also allow assessing the sensitivity of latent variables (i.e., attitudes and perceptions) in the car purchase behaviour. The models are estimated using data from a stated choice survey collected in five Colombian cities. The latent variables are obtained from the rating of statements related to the transport system, environmental concern, vehicle preferences, and technology. The modelling approach includes regression between latent variables. Results show that environmental concern and the support for green transport policies have a positive influence on the intention to purchase alternative fuel vehicles. Meanwhile, people who reveal to be car-dependent prefer to buy standard fuelled vehicles. The analysis among cities shows similar trends in individual behaviour, although there are differences in attribute sensitivities. The policy scenario analysis revealed high sensitivity to capital cost and the need for extensive investments in refuelling stations for alternative fuel vehicles to become attractive. Nevertheless, all policies should not only be directed at infrastructure and vehicles but also be focused on user awareness and acceptance of the alternative fuel vehicles. The analysis suggests that in an environmentally conscious market, people prefer alternative fuels. However, if the transport policies support private transport, the market shares of alternative fuel vehicles will decrease.     

A long panel survey to elicit variation in preferences and attitudes in the choice of electric vehicles

This paper describes the methodology we set up to gather appropriate data to study the impact of real life experience with electric vehicles (EVs) over a relatively long period of time on individual preferences and attitudes. We used stated choices (SC) to elicit individual preferences because EVs and their associated charging infrastructure are not yet fully integrated onto the market. Furthermore, to measure the extent to which the experience of using an EV may affect individual preferences and attitudes, we set up a “long panel” survey, where data was gathered before and after individuals experienced an EV in real life during a three-month period. We also measured attitudinal effects (AE) that might affect the choice of an EV by individuals. To our knowledge, this represents the first example of a “long panel” SC/AE and the first attempt to measure the formation of preferences and attitudes for this emerging product. Our results show that preferences and attitudes are indeed affected by real life experience. In the SC experiment, the respondents only chose the EV half as often as compared to the situation where they had not yet tried it. Furthermore, we measured a change in attitude for statements regarding the use of EVs. On the whole, respondents got a more positive view of the EV driving performance and this change is significantly greater for women than for men. However, respondents expressed more concern about being able to maintain current mobility with an EV. The data gathered in this survey should also serve to analyse the changes generated by direct experience with EVs, and eventually to formulate and estimate advanced discrete choice models that allow insights into factors relevant for improved understanding of market behaviour.     

Development of railway station choice models to improve the representation of station catchments in rail demand models

ABSTRACT

This paper describes the development of railway station choice models suitable for defining probabilistic station catchments. These catchments can then be incorporated into the aggregate demand models typically used to forecast demand for new rail stations. Revealed preference passenger survey data obtained from the Welsh and Scottish Governments was used for model calibration. Techniques were developed to identify trip origins and destinations from incomplete address information and to automatically validate reported trips. A bespoke trip planner was used to derive mode-specific station access variables and train leg measures. The results from a number of multinomial logit and random parameter (mixed) logit models are presented and their predictive performance assessed. The models were found to have substantially superior predictive accuracy compared to the base model (which assumes the nearest station has a probability of one), indicating that their incorporation into passenger demand forecasting methods has the potential to significantly improve model predictive performance.     

Effect of attitudes, habit and affective appraisal on mode choice: an application to university workers

Traditionally, car use and modal choice, in general, have been studied under the random utility framework, assuming that individuals choose a particular mode based on their own socio-economic characteristics and the attributes describing the available options. This approach has originated useful models which have been able to explain modal split. However, at the same time, it has received critics because of its poor characterization of human behaviour and the weakness of its assumptions. Research has suggested that socio-psychological factors could help to understand better the choice process. In this paper, attitudinal theory and its link to human behaviour were used to select attitudes, habit and affective appraisals as explanatory variables. They were measured using ad-hoc instruments, which were combined with a revealed preference questionnaire, in order to obtain information about the traveller and the chosen mode. This instrument was applied to a sample extracted from staff members of the University of Concepcion, Chile. Analyses of attitudinal variables showed that car use habit was positively correlated to attitude and positive emotions towards car, implying that breaking the vicious circle of car use through persuasive techniques might be difficult. Estimation of discrete choice models showed that attitudinal variables presented a significant contribution to modal utility, and helped to improve both fitness and statistical significance. Results showed that choice can be influenced by factors related to attitudes and affective appraisal, and that their study is necessary in order to achieve an effective car use reduction.

Neighborhoods,cars, and commuting in New York City: A discrete choice approach

Cities around the world are trying out a multitude of transportation policy and investment alternatives with the aim of reducing car-induced externalities. However, without a solid understanding of how people make their transportation and residential location choices, it is hard to tell which of these policies and investments are really doing the job and which are wasting precious city resources. The focus of this paper is the determinants of car ownership and car use for commuting. Using survey data from 1997 to 1998 collected in New York City, this paper uses discrete choice econometrics to estimate a model of the choices of car ownership and commute mode while also modeling the related choice of residential location.The main story told by this analysis is that New Yorkers are more sensitive to changes in travel time than they are to changes in travel cost. The model predicts that the most effective ways to reduce both auto ownership and car commuting involve changing the relative travel times for cars and transit, making transit trips faster by increasing both the frequency and the speed of service and making auto trips slower – perhaps simply by allowing traffic congestion. Population density also appears to have a substantial effect on car ownership in New York.     

Importance of traveler attitudes in the choice of public transportation to work: findings from the Regional Transportation Authority Attitudinal Survey

The commute mode choice decision is one of the most fundamental aspects of daily travel. Although initial research in this area was limited to explaining mode choice behavior as a function of traveler socioeconomics, travel times, and costs, subsequent studies have included the effect of traveler attitudes and perceptions. This paper extends the existing body of literature by examining public transit choice in the Chicago area. Data from a recent Attitudinal Survey conducted by the Regional Transportation Authority (RTA) in Northeastern Illinois were used to pursue three major steps. First, a factor analysis methodology was used to condense scores on 23 statements related to daily travel into six factors. Second, the factor scores on these six dimensions were used in conjunction with traveler socioeconomics, travel times, and costs to estimate a binary logistic regression of public transit choice. Third, elasticities of transit choice to the six factors were computed, and the factors were ranked in decreasing order of these elasticities. The analysis provided two major findings. First, from a statistical standpoint, the attitudinal factors improved the intuitiveness and goodness-of-fit of the model. Second, from a policy standpoint, the analysis indicated the importance of word-of-mouth publicity in attracting new riders, as well as the need for a marketing message that emphasizes the lower stress level and better commute time productivity due to transit use.     

Incorporating aggregate behavior in an individual’s discrete choice: An application to analyzing illegal bicycle parking behavior

Many types of travel behavior involve positive social interaction (conformity effect) and it sometimes induces undesirable results, such as chronic illegal bicycle parking and illegal car parking. In this study, the conformity effects among bicycle users in the choice problem of bicycle parking locations were modeled and estimated within a discrete choice framework. The proposed model combines discrete choice behavior of bicycle parking locations at an individual level (micro-level) with an average choice at an aggregate level (macro-level). The social equilibrium equation, which is derived from the individual-level choice model, entails multiple equilibria with regard to the choice proportion for each reference group of individuals. The model was econometrically identified by using the data collected in a survey conducted in Tokyo in 2001. The empirical results indicated that large variations in collective behavior occur across subgroups, which were defined by the stations the respondents visit often, since there was an intensive positive social interaction. Finally, the marginal frequency of police patrols required to drastically reduce the level of illegal bicycle parking was also calculated using the identified model.     

Illuminating the unseen in transit use: A framework for examining the effect of attitudes and perceptions on travel behavior

This study develops the Perception–Intention–Adaptation (PIA) framework to examine the role of attitudes, perceptions, and norms in public transportation ridership. The PIA framework is then applied to understand the relative importance of socio-demographic, built environment, transit service, and socio-psychological factors on public transit use for 279 residents of south Los Angeles, California, a predominately low-income, non-white neighborhood. Confirmatory factor analysis based on 21 survey items resulted in six transit-relevant socio-psychological factors which were used in regression models of two measures of transit use: the probability of using transit at least once in the 7-day observation period, and the mean number of daily transit trips. Our analysis indicates that two PIA constructs, attitudes toward public transportation and concerns about personal safety, significantly improved the model fit and were robust predictors of transit use, independent of built environment factors such as near-residence street network connectivity and transit service level. Results indicate the need for combined policy approaches to increasing transit use that not only enhance transit access, but also target attitudes about transit service and perceptions of crime on transit.