Random utility models with implicit availability/perception of choice alternatives for the simulation of travel demand

Random utility models are undoubtedly the most used models for the simulation of transport demand. These models simulate the choice of a decision-maker among a set of feasible alternatives and their operational use requires that the analyst is able to correctly specify this choice-set for each individual.Some early applications basically ignored this problem by assuming that all decision-makers chose from the same pre-specified choice-set. This assumption may be unrealistic in many practical cases and cause significant misspecification problems (P. Stopher, Transportation Journal of ASCE 106 (1980) 427; H. Williams, J. Ortuzar, Transportation Research B 16 (1982) 167).The problem of choice-set simulation has been dealt within the literature following two basically different approaches:

• •simulating the perception/availability of an alternative implicitly in the choice model,
• •simulating the choice-set generation explicitly in a separate model.

The implicit approach is more convenient from an operational point of view, while the explicit one is more appealing from a theoretical point of view.In this paper, a different approach to the modeling of availability/perception of alternatives in the context of random utility model is proposed. This approach is based on the concept of intermediate degrees of availability/perception of each alternative simulated through a model (or “inclusion function”) which in turn is introduced in the systematic utility of standard random utility models.This model, named implicit availability/perception (IAP), may be differently specified depending on assumptions made on the joint distribution of random residuals and the way in which the average degree of availability/perception is modeled.In this paper, a possible specification of the IAP model, based on the assumption of random residual distributed as i.i. Gumbel and with the average degree of availability/perception modeled as a binomial logit, is proposed.The paper also proposes ML estimation models in two cases: in the first, only information on alternatives choices is available, while in the second, this information is complemented with others on variables related to a latent (i.e., non-observable) alternatives availability/perception degree (e.g., information on car availability of decision-maker i used as an indirect measurement of the unknown and non-observable availability/perception degree of alternative car for decision-maker i in a modal split).The proposed specification is tested on mode choice data; the calibration results are compared with those of a similar logit specification with encouraging results in terms of goodness of fit.     

Sampling of alternatives in Logit Mixture models

Employing a strategy of sampling of alternatives is necessary for various transportation models that have to deal with large choice-sets. In this article, we propose a method to obtain consistent, asymptotically normal and relatively efficient estimators for Logit Mixture models while sampling alternatives. Our method is an extension of previous results for Logit and MEV models. We show that the practical application of the proposed method for Logit Mixture can result in a Naïve approach, in which the kernel is replaced by the usual sampling correction for Logit. We give theoretical support for previous applications of the Naïve approach, showing not only that it yields consistent estimators, but also providing its asymptotic distribution for proper hypothesis testing. We illustrate the proposed method using Monte Carlo experimentation and real data. Results provide further evidence that the Naïve approach is suitable and practical. The article concludes by summarizing the findings of this research, assessing their potential impact, and suggesting extensions of the research in this area.     

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.     

Park-and-ride lot choice model using random utility maximization and random regret minimization

This research aims to understand the park-and-ride (PNR) lot choice behaviour of users i.e., why PNR user choose one PNR lot versus another. Multinomial logit models are developed, the first based on the random utility maximization (RUM) concept where users are assumed to choose alternatives that have maximum utility, and the second based on the random regret minimization (RRM) concept where users are assumed to make decisions such that they minimize the regret in comparison to other foregone alternatives. A PNR trip is completed in two networks, the auto network and the transit network. The travel time of users for both the auto network and the transit network are used to create variables in the model. For the auto network, travel time is obtained using information from the strategic transport network using EMME/4 software, whereas travel time for the transit network is calculated using Google’s general transit feed specification data using a backward time-dependent shortest path algorithm. The involvement of two different networks in a PNR trip causes a trade-off relation within the PNR lot choice mechanism, and it is anticipated that an RRM model that captures this compromise effect may outperform typical RUM models. We use two forms of RRM models; the classical RRM and µRRM. Our results not only confirm a decade-old understanding that the RRM model may be an alternative concept to model transport choices, but also strengthen this understanding by exploring differences between two models in terms of model fit and out-of-sample predictive abilities. Further, our work is one of the few that estimates an RRM model on revealed preference data.

     

Behavior-based consistency-seeking models as deployment alternatives to dynamic traffic assignment models

This paper proposes a behavior-based consistency-seeking (BBCS) model as an alternative to the dynamic traffic assignment paradigm for the real-time control of traffic systems under information provision. The BBCS framework uses a hybrid probabilistic–possibilistic model to capture the day-to-day evolution and the within-day dynamics of individual driver behavior. It considers heterogeneous driver classes based on the broad behavioral characteristics of drivers elicited from surveys and past studies on driver behavior. Fuzzy logic and if–then rules are used to model the various driver behavior classes. The approach enables the modeling of information characteristics and driver response to be more consistent with the real-world. The day-to-day evolution of driver behavior characteristics is reflected by updating the appropriate model parameters based on the current day’s experience. The within-day behavioral dynamics are reactive and capture drivers’ actions vis-à-vis the ambient driving conditions by updating the weights associated with the relevant if–then rules. The BBCS model is deployed by updating the ambient driver behavior class fractions so as to ensure consistency with the real-time traffic sensor measurements. Simulation experiments are conducted to investigate the real-time applicability of the proposed framework to a real-world network. The results suggest that the approach can reasonably capture the within-day variations in driver behavior model parameters and class fractions in the traffic stream. Also, they indicate that deployment-capable information strategies can be used to influence system performance. From a computational standpoint, the approach is real-time deployable.     

Contrasts between utility maximisation and regret minimisation in the presence of opt out alternatives

An increasing number of studies of choice behaviour are looking at Random Regret Minimisation (RRM) as an alternative to the well established Random Utility Maximisation (RUM) framework. Empirical evidence tends to show small differences in performance between the two approaches, with the implied preference between the models being dataset specific. In the present paper, we discuss how in the context of choice tasks involving an opt out alternative, the differences are potentially more clear cut. Specifically, we hypothesise that when opt out alternatives are framed as a rejection of all the available alternatives, this is likely to have a detrimental impact on the performance of RRM, while the performance of RUM suffers more than RRM when the opt out is framed as a respondent being indifferent between the alternatives on offer. We provide empirical support for these hypotheses through two case studies, using the two different types of opt out alternatives. Our findings suggest that analysts need to carefully evaluate their choice of model structure in the presence of opt out alternatives, while any a priori preference for a given model structure should be taken into account in survey framing.     

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.     

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.     

Willingness to pay for freight travel time savings: contrasting random utility versus random valuation

Transportation - There is a considerable gap between the existing knowledge used to estimate the value of time in passenger transport when compared with the framework of analysis developed for...     

New insights on random regret minimization models

This paper develops new methodological insights on Random Regret Minimization (RRM) models. It starts by showing that the classical RRM model is not scale-invariant, and that – as a result – the degree of regret minimization behavior imposed by the classical RRM model depends crucially on the sizes of the estimated taste parameters in combination with the distribution of attribute-values in the data. Motivated by this insight, this paper makes three methodological contributions: (1) it clarifies how the estimated taste parameters and the decision rule are related to one another; (2) it introduces the notion of “profundity of regret”, and presents a formal measure of this concept; and (3) it proposes two new family members of random regret minimization models: the μRRM model, and the Pure-RRM model. These new methodological insights are illustrated by re-analyzing 10 datasets which have been used to compare linear-additive RUM and classical RRM models in recently published papers. Our re-analyses reveal that the degree of regret minimizing behavior imposed by the classical RRM model is generally very limited. This insight explains the small differences in model fit that have previously been reported in the literature between the classical RRM model and the linear-additive RUM model. Furthermore, we find that on 4 out of 10 datasets the μRRM model improves model fit very substantially as compared to the RUM and the classical RRM model.     

Methods of determining choice probability in utility maximising multiple alternative models

Methods of estimating choice probabilities between multiple alternatives are described, within the context of various methods of specifying the degree of correlation between the alternatives. A utility maximising framework is assumed. The models described are based either on the logit family or multinomial probit. Two new methods of analytical approximation for the multinomial probit model are introduced, which appear to show significant advantages over the traditional Clark method. Some comparative results of choice probability estimates are presented to support this contention. The conclusion discusses the relative usefulness of different choice estimation methods for different types of problem.     

Comparative analysis of traveler destination choice models by method of sampling alternatives

In a destination choice model, it is important to introduce alternatives that have been adequately aggregated into traffic analysis zone levels based on spatial similarities and feasibility of analysis, because considering every spatial location possible for the traveler as an elemental alternative is intractable in terms of data management and analysis. In this study, we derive strata for alternative sets through simple random sampling and stratified importance sampling based on the concept of Moran’s I. As a result of comparative analysis, we are able to reduce errors by drawing an adequate number of samples for the destination choice model’s choice alternative sets based on measures of spatial similarity.     

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.     

Assuring finite moments for willingness to pay in random coefficient models

Random coefficient models such as mixed logit are increasingly being used to allow for random heterogeneity in willingness to pay (WTP) measures. In the most commonly used specifications, the distribution of WTP for an attribute is derived from the distribution of the ratio of individual coefficients. Since the cost coefficient enters the denominator, its distribution plays a major role in the distribution of WTP. Depending on the choice of distribution for the cost coefficient, and its implied range, the distribution of WTP may or may not have finite moments. In this paper, we identify a criterion to determine whether, with a given distribution for the cost coefficient, the distribution of WTP has finite moments. Using this criterion, we show that some popular distributions used for the cost coefficient in random coefficient models, including normal, truncated normal, uniform and triangular, imply infinite moments for the distribution of WTP, even if truncated or bounded at zero. We also point out that relying on simulation approaches to obtain moments of WTP from the estimated distribution of the cost and attribute coefficients can mask the issue by giving finite moments when the true ones are infinite.     

Confidence intervals of willingness-to-pay for random coefficient logit models

Random coefficient logit (RCL) models containing random parameters are increasingly used for modelling travel choices. Willingness-to-pay (WTP) measures, such as the value of travel time savings (VTTS) are, in the case of RCL models estimated in preference space, ratios of random parameters. In this paper we apply the Delta method to compute the confidence intervals of such WTP measures, taking into account the variance–covariance matrix of the estimates of the distributional parameters. The same Delta method can be applied when the model is estimated in WTP space. Compared to simulation methods such as proposed by Krinsky and Robb, the Delta method is able to avoid most of the simulations by deriving partly analytical expressions for the standard errors. Examples of such computations are shown for different combinations of random distributions.     

A practical concern about the relevance of alternative-specific constants for new alternatives in simple logit models

When a “new” alternative is introduced, post-estimation, into a logit model, analysis initially exclude an ASC or occasionally assume a correspondence with an existing alternative. Using a recent data set for mode and route choice, the paper highlights the forecasting implications of ignoring the ASC in the utility expression of a “new” alternative, and how sensitive the market shares are to the inclusion/ exclusion of the ASC.     

Specification of the cross-nested logit model with sampling of alternatives for route choice models

We present an operational estimation procedure for the estimation of route choice multivariate extreme value (MEV) models based on sampling of alternatives. The procedure builds on the state-of-the-art literature, and in particular on recent methodological developments proposed by Flötteröd and Bierlaire (2013) and Guevara and Ben-Akiva (2013b). Case studies on both synthetic data and a real network demonstrate that the new method is valid and practical.     

Alternative specifications of the random disturbances for trip frequency models

The purpose of this paper is to present alternative functional specifications for models of shopping trip frequency and to illustrate the influence of the modelling assumptions on the interpretation of the determinants of trip frequency. The data used for this analysis is a 23-day diary of shopping travel by able bodied elderly individuals in Lawrence, Massachusetts. The alternative models are, in addition to ordinary least squares, an integer dependent variable model, and an error component model of a time-series of cross-sections.The findings suggest that, when models are developed that consider explicitly the discrete nature of the daily trip generation variable (i.e. the number of trips taken by an individual on a given day), forecasts which are not significantly different from the ordinary least squares forecasts are obtained.     

An empirical study on aggregation of alternatives and its influence on prediction in car type choice models

Transportation - Assessing and predicting car type choices are important for policy analysis. Car type choice models are often based on aggregate alternatives. This is due to the fact that analysts...     

A random utility maximization (RUM) based dynamic activity scheduling model: Application in weekend activity scheduling

The paper presents a modeling framework for dynamic activity scheduling. The modeling framework considers random utility maximization (RUM) assumption for its components in order to capture the joint activity type, location and continuous time expenditure choice tradeoffs over the course of the day. The dynamics of activity scheduling process are modeled by considering the history of activity participation as well as changes in time budget availability over the day. For empirical application, the model is estimated for weekend activity scheduling using a dataset (CHASE) collected in Toronto in 2002–2003. The data set classifies activities into nine general categories. For the empirical model of a 24-h weekend activity scheduling, only activity type and time expenditure choices are considered. The estimated empirical model captures many behavioral details and gives a high degree of fit to the observed weekend scheduling patterns. Some examples of such behavioral details are the effects of time of the day on activity type choice for scheduling and on the corresponding time expenditure; the effects of travel time requirements on activity type choice for scheduling and on the corresponding time expenditure, etc. Among many other findings, the empirical model reveals that on the weekend the utility of scheduling Recreational activities for later in the day and over a longer duration of time is high. It also reveals that on the weekend, Social activity scheduling is not affected by travel time requirements, but longer travel time requirements typically lead to longer-duration social activities.