The multinomial logit model revisited: A semi-parametric approach in discrete choice analysis

The multinomial logit model in discrete choice analysis is widely used in transport research. It has long been known that the Gumbel distribution forms the basis of the multinomial logit model. Although the Gumbel distribution is a good approximation in some applications such as route choice problems, it is chosen mainly for mathematical convenience. This can be restrictive in many other scenarios in practice. In this paper we show that the assumption of the Gumbel distribution can be substantially relaxed to include a large class of distributions that is stable with respect to the minimum operation. The distributions in the class allow heteroscedastic variances. We then seek a transformation that stabilizes the heteroscedastic variances. We show that this leads to a semi-parametric choice model which links the linear combination of travel-related attributes to the choice probabilities via an unknown sensitivity function. This sensitivity function reflects the degree of travelers’ sensitivity to the changes in the combined travel cost. The estimation of the semi-parametric choice model is also investigated and empirical studies are used to illustrate the developed method.     

Identification and diagnosis of specification errors in the multinomial logit model

Multinomial logit models of travel demand are subject to a variety of specification errors that can severely affect the accuracy the models' forecasts. This paper describes some of the important sources of specification errors in logit models, presents numerical illustrations of the errors' effects on forecasts of travel behavior, and evaluates the ability of several informal and formal statistical procedures to identify and diagnose the errors. Among the tests considered, the most powerful are a test against a probit model and the McFadden, Tye and Train (1976) test based on the universal logit method. The least powerful tests are a test based on extrapolating the logit model and informal tests based on examination of the signs, t-statistics and ratios of the estimated parameters of the logit function.     

A multinomial logit car use model for a megacity of the developing world: Istanbul

The increase in motor vehicle use is one of the important factors that cause traffic congestion, especially in megacities. Thus, the reasons behind this increase require serious attention. This paper offers an analysis of this kind, for a megacity from the developing world, Istanbul. A stratified multinomial logit model accounting for the availability of a second vehicle in the household is estimated for a sample drawn from a questionnaire to gather information of actual car use in Istanbul. This estimation is only possible through a unique data generation process that converts actual preferences into a choice study setting. In addition, a simulation study, generally utilized in the analyses of discrimination between certain layers of society, and a scenario analysis related to changes in income are also included in the paper for a better understanding of the nature of the topic. The results show that the behavior of households with a second vehicle available and not available varies significantly due to household, individual and professional-related characteristics.     

Travel demand elasticity with respect to socio-economic variables: The multinomial logit case

It is shown how travel demand elasticities can be obtained for socio-economic explanatory variables in the case of the multinomial logit model.     

Residential mobility and location choice: a nested logit model with sampling of alternatives

Residential mobility and relocation choice are essential parts of integrated transportation and land use models. These decision processes have been examined and modeled individually to a great extent but there remain gaps in the literature on the underlying behaviors that connect them. Households may partly base their decision to move from or stay at a current location on the price and quality of the available alternatives. Conversely, households that are on the market for a new location may evaluate housing choices relative to their previous residence. How and the degree to which these decisions relate to each other are, however, not completely understood. This research is intended to contribute to the body of empirical evidence that will help answer these questions. It is hypothesized that residential mobility and location choice are related household decisions that can be modeled together using a two-tier hierarchical structure. This paper presents a novel nested logit (NL) model with sampling of alternatives and a proposed procedure for sampling bias correction. The model was estimated using full-information maximum likelihood estimation methods. The results confirm the applicability of this NL model and support similar findings from other empirical studies in the residential mobility and location choice literature.     

Making mode detection transferable: extracting activity and travel episodes from GPS data using the multinomial logit model and Python

The increasing popularity of global positioning systems (GPSs) has prompted transportation researchers to develop methods that can automatically extract and classify episodes from GPS data. This paper presents a transferable and efficient method of extracting and classifying activity episodes from GPS data, without additional information. The proposed method, developed using Python®, introduces the use of the multinomial logit (MNL) model in classifying extracted episodes into different types: stop, car, walk, bus, and other (travel) episodes. The proposed method is demonstrated using a GPS dataset from the Space-Time Activity Research project in Halifax, Canada. The GPS data consisted of 5127 person-days (about 47 million points). With input requirements directly derived from GPS data and the efficiency provided by the MNL model, the proposed method looks promising as a transferable and efficient method of extracting activity and travel episodes from GPS data.     

Understanding public response to a congestion charge: A random-effects ordered logit approach

Public acceptance is consistently listed as having an enormous impact on the implementation and success of a congestion charge scheme. This paper investigates public acceptance of such a scheme in Australia. Surveys were conducted in Brisbane and Melbourne, the two fastest growing Australian cities. Using an ordered logit modeling approach, the survey data including stated preferences were analyzed to pinpoint the important factors influencing people’s attitudes to a congestion charge and, in turn, to their transport mode choices. To accommodate the nature of, and to account for the resulting heterogeneity of the panel data, random effects were considered in the models. As expected, this study found that the amount of the congestion charge and the financial benefits of implementing it have a significant influence on respondents’ support for the charge and on the likelihood of their taking a bus to city areas. However, respondents’ current primary transport mode for travelling to the city areas has a more pronounced impact. Meanwhile, respondents’ perceptions of the congestion charge’s role in protecting the environment by reducing vehicle emissions, and of the extent to which the charge would mean that they travelled less frequently to the city for shopping or entertainment, also have a significant impact on their level of support for its implementation. We also found and explained notable differences across two cities. Finally, findings from this study have been fully discussed in relation to the literature.     

Capturing tour mode and activity choice interdependencies: A co-evolutionary logit modelling approach

It is generally assumed that the choice of transport mode and the choice of including intermediate activities on a work tour are interrelated, but little is known about the nature of the causal relationship. To shed light on this, this paper addresses the question of whether transport mode choice is dependent on the activity choice or vice-versa. A new methodology, referred to as the co-evolutionary approach, is combined with a set of MNL models, one for each choice facet involved, to derive an indication of the order of decisions on an individual level. The models are estimated based on the work tours of a large sample of individuals in the Netherlands. The results suggest that there is substantial variation in the order of the transport mode and activity decisions. However, in the majority of cases the activity decision is made before the mode decision, suggesting that the transport mode and, in particular, the choice between car and public transport is most often ‘adjusted’ to the choice of trip chaining rather than the other way round.     

Aggregation with multinomial probit and estimation of disaggregate models with aggregate data: A new methodological approach

This paper describes an analytic aggregation procedure for disaggregate demand models similar to the one proposed in earlier publications by Westin (1974) and McFadden and Reid (1975). The technique, which uses a multivariate normal approximation for the distribution of the vector of attributes, is based on the multinomial profit algorithm proposed by Daganzo, Bouthelier and Sheffi (1977) and can be applied to an arbitrary number of alternatives. The procedure is computationally so efficient that it enables us to calibrate disaggregate models with aggregate data by maximum likelihood using the same or slightly modified codes developed for disaggregated data. The paper also contains a small scale numerical example intended to illustrate the important highlights of the aggregation-estimation problem.     

A joint model for vehicle type and fuel type choice: evidence from a cross-nested logit study

In the face of growing concerns about greenhouse gas emissions, there is increasing interest in forecasting the likely demand for alternative fuel vehicles. This paper presents an analysis carried out on stated preference survey data on California consumer responses to a joint vehicle type choice and fuel type choice experiment. Our study recognises the fact that this choice process potentially involves high correlations that an analyst may not be able to adequately represent in the modelled utility components. We further hypothesise that a cross-nested logit structure can capture more of the correlation patterns than the standard nested logit model structure in such a multi-dimensional choice process. Our empirical analysis and a brief forecasting exercise produce evidence to support these assertions. The implications of these findings extend beyond the context of the demand for alternative fuel vehicles to the analysis of multi-dimensional choice processes in general. Finally, an extension verifies that further gains can be made by using mixed GEV structures, allowing for random heterogeneity in addition to the flexible correlation structures.     

Evaluating the environmental impacts of online shopping: A behavioral and transportation approach

Various fields and commercial sectors have witnessed a transformation with the advent of the internet. In the last decade, the retail sector in particular has witnessed the massive growth of e-commerce. This has also significantly altered our shopping experiences, influencing a range of decisions, from where, how, and how much to shop. With the consistent growth of e-commerce transactions, more trucks than ever before are entering cities today, bringing with them the negative externalities of increased congestion and pollution. This study first unravels underlying shopping behaviors–both in-store and online–using the 2016 American Time Use Survey (ATUS) data. The authors also develop an econometric behavioral model to understand the factors that affect shopping decisions. At a macro level, the disaggregate individual shopping behaviors are studied by implementing the model to synthetic populations to estimate potential vehicle miles traveled and environmental emissions in two metropolitan areas, Dallas and San Francisco (SF). Finally, the study estimates the impacts of rush deliveries, basket size, and consolidation levels by developing a breakeven analysis between in-store and online shopping. These results confirm the importance of managing the urban freight system, including delivery services and operations, to foster a more sustainable urban environment.     

Network design: selection and design of links and facility location

In this paper we introduce new network design problems. A network of potential links is given. Each link can be either constructed or not at a given cost. Also, each constructed link can be constructed either as a one-way or two-way link. The objective is to minimize the total construction and transportation costs. Two different transportation costs are considered: (i) traffic is generated between any pair of nodes and the transportation cost is the total cost for the users and (ii) demand for service is generated at each node and a facility is to be located on a node to satisfy the demand. The transportation cost in this case is the total cost for a round trip from the facility to each node and back. We will consider two options in regard to the links between nodes. They can either be two-way only, or mixed, with both two-way and one-way (in either direction) allowed. When these options are combined with the two objective functions, four basic problems are created. These problems are solved by a descent algorithm, simulated annealing, tabu search, and a genetic algorithm. Extensive computational results are presented.     

Commodity flow estimation for a metropolitan scale freight modeling system: supplier selection considering distribution channel using an error component logit mixture model

Freight forecasting models have been significantly improved in recent years, especially in the field of goods vehicle behavior modeling. On the other hand, the improvements to commodity flow modeling, which provide inputs for goods vehicle simulations, were limited. Contributing to this component in urban freight modeling systems, we propose an error component logit mixture model for matching a receiver to a supplier that considers two-layers in supplier selection: distribution channels and specific suppliers. The distribution channel is an important element in freight modeling, as the type of distribution channel is relevant to various aspects of shipments and vehicle trips. The model is estimated using the data from the Tokyo Metropolitan Freight Survey. We demonstrate how typical establishment survey data (i.e. establishment and outbound shipment records) can be used to develop the model. The model captures the correlation structure of potential suppliers defined by business function and provides insights on the differences in the supplier choice by distribution channel. The reproducibility tests confirm the validity of the proposed approach, which is currently integrated into a metropolitan-scale agent-based freight modeling system, for practical use.

     

A continuum approximation approach to competitive facility location design under facility disruption risks

This paper presents game-theoretical models based on a continuous approximation (CA) scheme to optimize service facility location design under spatial competition and facility disruption risks. The share of customer demand in a market depends on the functionality of service facilities and the presence of nearby competitors, as customers normally seek the nearest functioning facility for service. Our game-theoretical models incorporate these complicating factors into an integrated framework, and use continuous and differentiable density functions to represent discrete location decisions. We first analyze the existence of Nash equilibria in a symmetric two-company competition case. Then we build a leader–follower Stackelberg competition model to derive the optimal facility location design when one of the companies has the first mover advantage over its competitor. Both models are solved effectively, and closed-form analytical solutions can be obtained for special cases. Numerical experiments (with hypothetical and empirical data) are conducted to show the impacts of competition, facility disruption risks and transportation cost metrics on the optimal design. Properties of the models are analyzed to cast interesting managerial insights.     

A comprehensive dwelling unit choice model accommodating psychological constructs within a search strategy for consideration set formation

This study adopts a dwelling unit level of analysis and considers a probabilistic choice set generation approach for residential choice modeling. In doing so, we accommodate the fact that housing choices involve both characteristics of the dwelling unit and its location, while also mimicking the search process that underlies housing decisions. In particular, we model a complete range of dwelling unit choices that include tenure type (rent or own), housing type (single family detached, single family attached, or apartment complex), number of bedrooms, number of bathrooms, number of storeys (one or multiple), square footage of the house, lot size, housing costs, density of residential neighborhood, and commute distance. Bhat’s (2015) generalized heterogeneous data model (GHDM) system is used to accommodate the different types of dependent outcomes associated with housing choices, while capturing jointness caused by unobserved factors. The proposed analytic framework is applied to study housing choices using data derived from the 2009 American Housing Survey (AHS), sponsored by the Department of Housing and Urban Development (HUD) and conducted by the U.S. Census Bureau. The results confirm the jointness in housing choices, and indicate the superiority of a choice set formation model relative to a model that assumes the availability of all dwelling unit alternatives in the choice set.     

Dynamic location: an iconic model to synchronize temporal and spatial transportation data

This paper describes a model to synchronize the management and query of temporal and spatially referenced transportation data in geographic information systems (GIS). The model employs a method referred to as dynamic location, which facilitates spatial intersect queries from geographic shapes without the use of topological relationships. This is the inverse of how dynamic segmentation works in GIS. In contrast to dynamic segmentation, dynamic location stores geometry as an object within a single database field. This is an efficient, precise iconic model superseding the need for data decomposition into a complex set of tables. As an object model, the dynamic location process lends itself to high performance in an Internet, data-intensive, enterprise environment. Linear events are stored as {x, y} features, and not referenced to any route system. Route systems are built from {x, y, m} values (m for measure) and serve as number lines for mathematical operations. Any {x, y} object can then be referenced to either the Cartesian grid or any selected number line. This method offers the benefits of linear referencing, while making full use of a stable geodetic datum. Combinations of any {x, y} events may be placed over any {x, y, m} number line (route) and an intersect determined by looking through stacked {x, y, m} vertices of the coincident shapes. Since both geometry and shape reside in the same record, the use of “begin” and “end” dates facilitates full spatial and temporal version control. From a business process perspective, this creates a spatially enabled database, pulling GIS business functions back into the information technology mainstream.     

A model for integrated analysis of household location and travel choices

We develop a model for integrated analysis of household location and travel choices and investigate it from a theoretical point of view.Each household makes a joint choice of location (zone and house type) and a travel pattern that maximizes utility subject to budget and time constraints. Prices for housing are calculated so that demand equals supply in each submarket. The travel pattern consists of a set of expected trip frequencies to different destinations with different modes. The joint time and budget constraints ensure that time and cost sensitivities are consistent throughout the model. Choosing the entire travel pattern at once, as opposed to treating travel decisions as a series of isolated choices, allows the marginal utilities of trips to depend on which other trips are made.When choosing trip frequencies to destinations, households are assumed to prefer variation to an extent varying with the purpose of the trip. The travel pattern will tend to be more evenly distributed across trip ends the less similar destinations and individual preferences are. These heterogeneities of destinations and individual preferences, respectively, are expressed in terms of a set of parameters to be estimated.     

A fuzzy stochastic approach to the multicriteria selection of an aircraft for regional chartering

This article deals with the problem of decision support for the selection of an aircraft. This is a problem faced by an airline company that is investing in regional charter flights in Brazil. The company belongs to an economic group whose core business is logistics. The problem has eight alternatives to be evaluated under 11 different criteria, whose measurements can be exact, stochastic, or fuzzy. The technique chosen for analyzing and then finding a solution to the problem is the multicriteria decision aiding method named NAIADE (Novel Approach to Imprecise Assessment and Decision Environments). The method used allows tackling the problems by working with quantitative as well as qualitative criteria under uncertainty and imprecision. Another considerable advantage of NAIADE over other multicriteria methods relies in its characteristics of not requiring a prior definition of the weights by the decision maker. As a conclusion, it can be said that the use of NAIADE provided for consistent results to that aircraft selection problem. Copyright © 2012 John Wiley & Sons, Ltd.