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.     

The transaction cost approach to modeling the demand for automobiles

The purchase of an automobile involves significant transaction costs in addition to the purchase price. Therefore, the assumptions implied by static car holding models are invalid. This paper describes a dynamic approach to the modeling of level-of-ownership and auto-type choice, based on a transaction choice model which utilizes information on past car ownership. The cost or disutility of a transaction depends on the attributes of the household and the purchased car, as well as on past car-ownership characteristics. A set of assumptions underlying the incorporation of transaction costs in the model is presented. The paper discusses the econometric implications of omitting the dynamic attributes (i.e., past ownership characteristics). A disaggregate model was estimated, using a choice-based sample consisting of a random sample of households enriched with a sample of households which transacted in the car market during the study period. This sampling method combined with a random choice of a subset of the car alternatives provides for a cost-effective method to estimate a transaction model.     

A behavioral housing search model: Two-stage hazard-based and multinomial logit approach to choice-set formation and location selection

Residential location search has become an important topic to both practitioners and researchers as more detailed and disaggregate land-use and transportation demand models are developed which require information on individual household location decisions. The housing search process starts with an alternative formation and screening stage. At this level households evaluate all potential alternatives based on their lifestyle, preferences, and utilities to form a manageable choice set with a limited number of plausible alternatives. Then the final residential location is selected among these alternatives. This two-stage decision making process can be used for both aggregate zone-level selection as well as searching disaggregate parcel or building-based housing markets for potential dwellings. In this paper a zonal level household housing search model is developed. Initially, a household specific choice set is drawn from the entire possible alternatives in the area based on the average household work distance to each alternative. Following the choice set formation step, a discrete choice model is utilized for modeling the final residential zone selection of the household. A hazard-based model is used for the choice set formation module while the final choice selection is modeled using a multinomial logit formulation with a deterministic sample correction factor. The approach presented in the paper provides a remedy for the large choice set problem typically faced in housing search models.     

A simultaneous destination and mode choice model for shopping trips

This paper describes a disaggregate simultaneous destination and mode choice model for shopping trips. Following an introduction to the model structure and a review of the data, the results of five different model specifications are discussed. The models were estimated using data from two communities adjacent to Eindhoven, the Netherlands and utilise the multinomial logit model.     

Operational route choice methodologies for practical applications

This paper focuses on the application of tractable route choice models and presents a set of methods for deriving relevant disaggregate and aggregate route choice indicators, namely link and route flows. Tractability is achieved at the disaggregate level by the recursive logit model and at the aggregate level by the mental representation item (\(\mathrm {MRI}\)) approach. These two approaches are analyzed here, and extensions of the \({\mathrm {MRI}}\) approach are presented. The analysis elaborates on the features of each model and allows to draw insights into the use of a specific model, depending on the needs of the application and the data availability. The performance of the two models is tested on real data. The results demonstrate the validity of the \({\mathrm {MRI}}\) model that is intended for aggregate analysis.

     

A comparative study of aggregate and disaggregate gravity models using Seoul metropolitan subway trip data

Abstract

Existing origin constrained and doubly constrained gravity models have not been compared, theoretically or empirically, in terms of their forecasting power. Due to the newly advanced technology of intelligent transport systems, the expanded data presently available have made various models more comparable in terms of forecasting power. This paper uses archived automatic passenger counting (APC) data for urban rail in the Seoul metropolitan area. The APC data contains information about each trip's origin, destination, ticket type, fare, and distance on a daily basis. The objective of this paper is to compare the goodness-of-fit of aggregate and disaggregate gravity modeling using these data. A Hyman aggregate gravity model is used as the aggregate model without the spatial effect. The disaggregate model adopts a multinomial logit as the destination choice model with the spatial effect. In general, while the formulation of aggregate and disaggregate gravity model models are similar, the calibration and parameter estimation methods of the two models are different. As a result, this empirical study demonstrates that the variation in goodness-of-fit and forecasting power largely depends on the estimation method and selected variables. The forecasting power of the disaggregate modeling approach outperforms that of the aggregate model. This paper further confirms that spatial arrangement plays important roles in gravity modeling.     

Towards a dynamic discrete-choice model of household automobile fleet size and composition

The emphasis on energy consumption in studies of traveller behaviour has led to increased interest in the development of policy sensitive models of automobile demand. In recognition of the fuller dimensions of automobile demand, a number of studies have considered choice amongst types of automobiles as well as number of automobiles. With rare exception, existing studies have concentrated on either type choice or number choice. In all instances the approach has been static. This paper develops a series of linked discrete-choice models to explain household automobile holdings (type and number) and adjustments in the holdings over time. The empirical study is part of an initial data effort leading up to the development of a full scale longitudinal panel of Sydney households. A model system based on a retrospective panel of 354 households, interviewed in 1980, is reported herein. The model is dynamic in the sense that it allows for prior decisions, brand loyalty and the costs of transacting.     

A note on the consistent aggregation of nested logit demand functions

The present paper derives a set of rules allowing for the consistent aggregation of nested logit travel demand functions across origin and destination zones. Presented aggregation rules are derived for the case when the mode choice is performed conditional on destination choice. The derivation is based on the principles of consistency between aggregate and disaggregate travel demand models introduced by Sweet as well as upon the sampling theory.     

Analysis of personal action space using a model system with multiple choice structures

The concept of heterogeneity in choice structure is applied in this study to examine individuals’ action space, which is defined in terms of the reported frequencies of visits. A disaggregate model system that predicts the frequency of visits is condensed using a nested logit model with multiple choice structures.     

Forecasting automobile demand using disaggregate choice models

This paper presents a simulation model of the American automobile market. The simulation model combines a disaggregate model of household automobile number and type choice with an econometric model of used vehicle scrappage and simple models of new car supply. For fixed vehicle designs, consumer and producer interactions determine new car sales, used car scrappage and consumer vehicle holdings. The model allows automobiles to be highly differentiated and consumers to be heterogeneous. Short-run equilibrium is defined as supply equal to demand for every vehicle type during each market period. The automobile stock then evolves slowly as new vehicles are added and old vehicles are removed during each period. An empirical application of the simulation model with 12 consumer groups and 131 vehicle types is used to forecast automobile holdings. A base case scenario is run for 1978–1984 and compared with the observed market behavior during this period. Several other simulations are then run comparing different gasoline price scenarios with the base case for 1984–1990.     

The role of accessibility in basic transportation choice behavior

Accessibility measures reflect the level of service provided by transportation systems to various locations. Basic transportation choice behavior is defined to include those decisions of how many automobiles to own and how many trips to which destinations to make by automobile and by public transit. Here, these decisions are assumed to be made jointly by urban households and are conditional upon residential location decisions. It is the purpose of this paper to explore the role of accessibility as a causal factor in such basic transportation choice behavior.An economic utility theory model of choice behavior is postulated in which the benefits from making trips to specific destinations are reflected by measures of destination attraction. Through determination of utility-maximizing trip frequencies, indirect utility functions are developed which include accessibility concepts. Behavioral implications of these concepts are proposed and contrasts are drawn to accessibility measures used in conventional segregated models of trip distribution, modal choice, and automobile ownership.Sensitivity analyses of alternative empirical definitions of accessibility in the choice model are conducted using data from the Detroit Regional Transportation and Land Use Study — covering counties in southeastern Michigan. These analyses employ a multinomial logit estimation technique and focus on definitions of trip attraction. Results of these analyses indicate that more complicated attraction measures can be replaced by measures involving the proportion of either urban area population or urban area employment within a traffic analysis zone. Also, evidence is found that decision-makers in the case study area consider trips of up to 60 or even 90 minutes duration when evaluating accessibilities offered by alternative public and private transportation systems.     

Trip chaining as a barrier to the propensity to use public transport

Trip chaining is a growing phenomenon in travel and activity behaviour. Individuals increasingly seek out opportunities to minimise the amount of travel required as part of activity fulfilment, given the competing demands on time budgets and their valuation of travel time savings. This search for ways of fulfilling (more) activities with less travel input has produced a number of responses, one of which is trip chaining. A particularly important policy implication of trip chaining is the potential barrier it creates in attracting car users to switch to public transport. This paper seeks to improve our understanding of trip chaining as a barrier to public transport use. A series of discrete choice models are estimated to identify the role that socio-economic and demographic characteristics of households have on the propensity to undertake trip chains of varying degrees of simplicity/complexity that involve use of the car or public transport with an embedded commuting or non-commuting primary purpose. Multinomial logit, nested logit and random parameter logit models are developed and contrasted to establish the gains in relaxing the strict conditions of the multinomial logit model.     

The Mixed Logit model: The state of practice

The mixed logit model is considered to be the most promising state of the art discrete choice model currently available. Increasingly researchers and practitioners are estimating mixed logit models of various degrees of sophistication with mixtures of revealed preference and stated choice data. It is timely to review progress in model estimation since the learning curve is steep and the unwary are likely to fall into a chasm if not careful. These chasms are very deep indeed given the complexity of the mixed logit model. Although the theory is relatively clear, estimation and data issues are far from clear. Indeed there is a great deal of potential mis-inference consequent on trying to extract increased behavioural realism from data that are often not able to comply with the demands of mixed logit models. Possibly for the first time we now have an estimation method that requires extremely high quality data if the analyst wishes to take advantage of the extended behavioural capabilities of such models. This paper focuses on the new opportunities offered by mixed logit models and some issues to be aware of to avoid misuse of such advanced discrete choice methods by the practitioner.     

Further evidence on the temporal stability of disaggregate travel demand models

Current evidence on the transferability of disaggregate travel demand models is inconclusive. Adding to this body of research, the present analysis focuses upon the temporal characteristics of work trip behavior in the San Francisco Bay Area. Using before and after data sets associated with the BART Impact Travel Study, multinomial logit models of work trip modal choice are estimated. The results indicate that the general form and the coefficient estimates of a pre BART model are transferable in time. Moreover, when updated to reflect BART's presence, the model's predictive success and its implied elasticity measures are generally accurate, relative to those implied by reestimating the entire model on post BART data. Finally, as economic theory would predict, elasticity measures of the service related variables were found to increase over time.     

Some estimation results of a simultaneous model of auto ownership and mode choice to work

This paper describes the theory, development and estimation of a simultaneous disaggregate model of automobile ownership and mode to work choices. The motivation for such a model and the general theory of the simultaneous probabilistic choice model are briefly discussed. The general model specification and the set of choices assumed to be available to each household is then considered. Finally, the variables used in the model are defined and the estimation results are presented.     

A joint flexible econometric model system of household residential location and vehicle fleet composition/usage choices

Modeling the interaction between the built environment and travel behavior is of much interest to transportation planning professionals due to the desire to curb vehicular travel demand through modifications to built environment attributes. However, such models need to take into account self-selection effects in residential location choice, wherein households choose to reside in neighborhoods and built environments that are conducive to their lifestyle preferences and attitudes. This phenomenon, well-recognized in the literature, calls for the specification and estimation of joint models of multi-dimensional land use and travel choice processes. However, the estimation of such model systems that explicitly account for the presence of unobserved factors that jointly impact multiple choice dimensions is extremely complex and computationally intensive. This paper presents a joint GEV-based logit regression model of residential location choice, vehicle count by type choice, and vehicle usage (vehicle miles of travel) using a copula-based framework that facilitates the estimation of joint equations systems with error dependence structures within a simple and flexible closed-form analytic framework. The model system is estimated on a sample derived from the 2000 San Francisco Bay Area Household Travel Survey. Estimation results show that there is significant dependency among the choice dimensions and that self-selection effects cannot be ignored when modeling land use-travel behavior interactions.     

The accuracy of the multinomial logit model as an approximation to the multinomial probit model of travel demand

The multinomial probit model of travel demand is considerably more general but much less tractable than the better-known multinomial logit model. In an effort to determine the effects of using the relatively simple logit model in situations where the assumptions of probit modeling are satisfied but those of logit modeling are not, the accuracy of the multinomial logit model as an approximation to a variety of three-alternative probit models has been evaluated. Multinomial logit can give highly erroneous estimates of the choice probabilities of multinomial probit models. However, logit models appear to give asymptotically accurate estimates of the ratios of the coefficients of the systematic components of probit utility functions, even when the logit choice probabilities differ greatly from the probit ones. Large estimation data sets are not necessarily needed to enable likelihood ratio tests to distinguish three-alternative probit models from logit models that give seriously erroneous estimates of the probit choice probabilities. Inclusion of alternative-specific dummy variables in logit utility functions cannot be relied upon to reduce significantly the errors of logit approximations to the choice probabilities of probit models whose utility functions do not contain the dummies.     

A utility maximizing model of the demand for multi-destination non-work travel

The multinomial probit model of travel demand is considerably more general but much less tractable than the better-known multinomial logit model. In an effort to determine the effects of using the relatively simple logit model in situations where the assumptions of probit modeling are satisfied but those of logit modeling are not, the accuracy of the multinomial logit model as an approximation to a variety of three-alternative probit models has been evaluated. Multinomial logit can give highly erroneous estimates of the choice probabilities of multinomial probit models. However, logit models appear to give asymptotically accurate estimates of the ratios of the coefficients of the systematic components of probit utility functions, even when the logit choice probabilities differ greatly from the probit ones. Large estimation data sets are not necessarily needed to enable likelihood ratio tests to distinguish three-alternative probit models from logit models that give seriously erroneous estimates of the probit choice probabilities. Inclusion of alternative-specific dummy variables in logit utility functions cannot be relied upon to reduce significantly the errors of logit approximations to the choice probabilities of probit models whose utility functions do not contain the dummies.     

Freight transportation demand: A survey of recent econometric studies

This paper surveys econometric studies of freight transportation demand which have been published since the mid-1970s. It describes the variables, data sources, and estimation procedures utilized by the studies. In addition, it summarizes their statistical results. The studies included in this survey typically accounted for freight rates and service characteristics (e.g., transit time and reliability). Data sources often varied across the studies.Based on the data they utilized, the surveyed studies are classified as either aggregate or disaggregate. The data in the aggregate studies consist of information on total flows by modes at the regional or national level, while the data in the disaggregate studies pertain to individual shipments. The earlier aggregate studies estimated linear logit models. It has been pointed out that when they are estimated on aggregate data these models are subject to certain shortcomings. To avoid these shortcomings, more recent aggregate studies have estimated flexible forms such as translog functions. The disaggregate studies surveyed in this paper used either logit or probit models.Statistical results often varied with the commodities analyzed, making it somewhat difficult to generalize the findings of the different studies. One finding common to several studies is that freight rates have a significant impact on shipment decisions. This paper discusses certain theoretical and empirical limitations of the surveyed studies. It also offers suggestions for future research in freight transport demand. Freight demand models can be used to examine various effects of the recent deregulation in freight transportation.     

Using demand elasticities from disaggregate mode choice models

Three of the most highly regarded disaggregate mode split models incorporate very different estimates of the responsiveness, or elasticity, of mode choice to changes in auto travel times and costs. These differences appear to be due in part to the varying specifications used by the model, and particularly whether certain variables (such as a dummy variable for CBD destinations or automobile ownership) are included in addition to the more traditional variables (such as travel time, cost, and household income). More research is needed on the implications of the theory of traveler choices for model specification and the effect of alternative, but theoretically justifiable, specifications on elasticity estimates. Until this research reduces our uncertainty about the elasticity of demand, analysts evaluating transportation policies should assess the sensitivity of their results to the range of plausible elasticities or models.