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.     

Analysis of long-distance vacation travel demand in the United States: a multiple discrete–continuous choice framework

This study analyzes the annual vacation destination choices and related time allocation patterns of American households. More specifically, an annual vacation destination choice and time allocation model is formulated to simultaneously predict the different vacation destinations that a household visits in a year, and the time (no. of days) it allocates to each of the visited destinations. The model takes the form of a multiple discrete–continuous extreme value (MDCEV) structure. Further, a variant of the MDCEV model is proposed to reduce the prediction of unrealistically small amounts of vacation time allocation to the chosen destinations. To do so, the continuously non-linear utility functional form in the MDCEV framework is replaced with a combination of a linear and non-linear form. The empirical analysis was performed using the 1995 American Travel Survey data, with the United States divided into 210 alternative destinations. The model estimation results provide several insights into the determinants of households’ vacation destination choice and time allocation patterns. Results suggest that travel times and travel costs to the destinations, and lodging costs, leisure activity opportunities (measured by employment in the leisure industry), length of coastline, and weather conditions at the destinations influence households’ destination choices for vacations. The annual vacation destination choice model developed in this study can be incorporated into a larger national travel modeling framework for predicting the national-level, origin–destination flows for vacation travel.     

A non-compensatory choice model incorporating attribute cutoffs

This research proposes an extension to the traditional compensatory utility maximization framework which has guided most theoretical and statistical work in choice modeling applications, including those in transportation demand estimation work. Attribute cutoffs are incorporated into the decision problem formulation; it is then argued on extant empirical evidence that individuals may view these constraints as “soft”. This leads to the formulation of a penalized utility function that allows for constraint violation, but at a cost to the overall evaluation of the good. The proposed model is able to represent fully compensatory, conjunctive and disjunctive choice strategies, as well as combinations thereof. The properties of the proposed theoretical model are examined and discussed. From the theoretical framework, statistical models of choice behavior are easily derived; in their simplest forms, these models can be estimated using existing software. A Stated Preference choice experiment is analyzed using the proposed model, which is found to be highly consistent with observed choices and superior to a structural two-stage choice set formation model.     

A class of RUM choice models that includes the model in which the utility has logistic distributed errors

A class of random utility maximization (RUM) models is introduced. For these RUM models the utility errors are the sum of two independent random variables, where one of them follows a Gumbel distribution. For this class of RUM models an integral representation of the choice probability generating function has been derived which is substantially different from the usual integral representation arising from the RUM theory. Four types of models belonging to the class are presented. Thanks to the new integral representation, a closed-form expression for the choice probability generating function for these four models may be easily obtained. The resulting choice probabilities are fairly manageable and this fact makes the proposed models an interesting alternative to the logit model. The proposed models have been applied to two samples of interurban trips in Japan and some of them yield a better fit than the logit model. Finally, the concavity of the log-likelihood of the proposed models with respect to the utility coefficients is also analyzed.     

A utility-theory travel demand model incorporating travel budgets

A model of traveler behavior is proposed which is consistent with the possibility that travelers expend average daily amounts of time and money on travel with stable regularities both among urban areas and over time in the same area. The model is founded on economic utility theory. It is designed to forecast: (1) the amount of total travel generated by types of households, (2) the division of travel among available modes, and (3) the relationship between the amounts of time and money allocated to travel expenditures. The qualitative properties of the model are shown to be consistent with economic principles. Specific theoretical results reveal that, in the simultaneous presence of constraints on both time and money, travel budgets are not strictly constant proportions of income and time available as they are in the cases of single constraints relevant to classes of travelers to whom time is scarce compared to money, or conversely. Constant expenditure proportions are shown to be linear approximations which are subject to empirical validation. The relevant economic principle is that expenditures can be considered fixed in the short run but become flexible in the long run when utility maximization is applied to the expenditures themselves and not just to their allocation. Empirical tests of the model using data from three urban areas are positive, but additional tests are called for. The most important output of the research is deemed to be the establishment of theoretical hypotheses which can be used in continuing tests of travel budgets.     

Towards a microeconomic framework for modelling the joint choice of activity–travel behaviour and ICT use

The rapid development of information and communication technologies (ICT) has been argued to affect time use patterns in a variety of ways, with consequent impacts on travel behaviour. While there exists a significant body of empirical studies documenting these effects, theoretical developments have lagged this empirical work and in particular, microeconomic time allocation models have not to date been fully extended to accommodate the implications of an increasingly digitised society. To address this gap, we present a modelling framework, grounded in time allocation theories and the goods–leisure framework, for joint modelling of the choice of mode of activity (physical versus tele-activity), travel mode and route, and ICT bundle. By providing the expression for a conditional indirect utility function, we use hypothetical scenarios to demonstrate how our framework can conceptualise various activity–travel decision situations. In our scenarios we assume a variety of situations such as the implications of severe weather, the introduction of autonomous vehicles, and the interaction between multiple decision makers. Moreover, our approach lays the microeconomic foundations for deriving subjective values of ICT qualities such as broadband speed or connection reliability. Finally, we also demonstrate the means by which our framework could be linked to various data collection protocols (stated preference exercises, diaries of social interactions, laboratory experiments) and modelling approaches (discrete choice modelling, hazard-based duration models).     

Price-based regulation of oligopolistic markets under discrete choice models of demand

We propose a framework to find optimal price-based policies to regulate markets characterized by oligopolistic competition and in which consumers make a discrete choice among a finite set of alternatives. The framework accommodates general discrete choice models available in the literature in order to capture heterogeneous consumer behavior. In our work, consumers are utility maximizers and are modeled according to random utility theory. Suppliers are modeled as profit maximizers, according to the traditional microeconomic treatment. Market competition is modeled as a non-cooperative game, for which an approximate equilibrium solution is sought. Finally, the regulator can affect the behavior of all other agents by giving subsidies or imposing taxes to consumers. In transport markets, economic instruments might target specific alternatives, to reduce externalities such as congestion or emissions, or specific segments of the population, to achieve social welfare objectives. In public policy, different agents have different individual or social objectives, possibly conflicting, which must be taken into account within a social welfare function. We present a mixed integer optimization model to find optimal policies subject to supplier profit maximization and consumer utility maximization constraints. Then, we propose a model-based heuristic approach based on the fixed-point iteration algorithm that finds an approximate equilibrium solution for the market. Numerical experiments on an intercity travel case study show how the regulator can optimize its decisions under different scenarios.

     

Incorporating time and income constraints in dynamic agent-based models of activity generation and time use: Approach and illustration

Existing theories and models in economics and transportation treat households’ decisions regarding allocation of time and income to activities as a resource-allocation optimization problem. This stands in contrast with the dynamic nature of day-by-day activity-travel choices. Therefore, in the present paper we propose a different approach to model activity generation and allocation decisions of individuals and households that acknowledges the dynamic nature of the behavior. A dynamic representation of time and money allocation decisions is necessary to properly understand the impact of new technologies on day to day variations in travel and activity patterns and on performance of transportation systems. We propose an agent-based model where agents, rather than acting on the basis of a resource allocation solution for a given time period, make resource allocation decisions on a day-by-day basis taking into account day-varying conditions and at the same time respecting available budgets over a longer time horizon. Agents that share a household interact and allocate household tasks and budgets among each other. We introduce the agent-based model and formally discuss the properties of the model. The approach is illustrated on the basis of simulation of behavior in time and space.     

Simultaneous modeling of individuals’ duration and expenditure decisions in out-of-home leisure activities

In this paper, we propose an activity model under time and budget constraints to simultaneously predict the allocation of time and money to out-of-home leisure activities. The proposed framework considers the activity episode level, given that the activity is scheduled. Thus, the model considers the decision of the quantities for duration and expenditure spent during the activity. We use a flexible utility function and show how the simultaneous equations can be estimated by using structural equations model (SEM) estimation techniques to handle the endogeneity problem of time and expenditure. The estimation results are based on a large national leisure diary data set collected in 2008 in the Netherlands, which provides detailed information about time and money spent as well as timing and location attributes of the activities. The analysis reveals that socio-demographics, travel party, timing and location variables influence the duration and expenditure of activity episodes. It shows that various socio-demographic groups display different preferences in terms of the time and money spent on activities. The results also indicate substitution relationships between spending more time and money for various activity categories. Thus it is concluded that the analysis provides useful results for a better understanding of combined time and money allocation decisions for leisure activities.     

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.     

Random regret minimization or random utility maximization: an exploratory analysis in the context of automobile fuel choice

Interest in alternative behavioural paradigms to random utility maximization (RUM) has existed ever since the dominance of the RUM formulation. One alternative is known as random regret minimization (RRM), which suggests that when choosing between alternatives, decision makers aim to minimize anticipated regret. Although the idea of regret is not new, its incorporation into the same discrete choice framework of RUM is very recent. This paper is the first to apply the RRM‐model framework to model choice amongst durable goods. Specifically, we estimate and compare the RRM and RUM models in a stated choice context of choosing amongst vehicles fuelled with petrol, diesel and hybrid (associated with specific levels of fuel efficiency and engine capacity). The RRM model is found to achieve a marginally better fit (using a non‐nested test of differences) than its equally parsimonious RUM counterpart. As a second contribution, we derive a formulation for regret‐based elasticities and compare utility‐based and regret‐based elasticities in the context of stated vehicle type choices. We find that in the context of our choice data, mean estimates of elasticities are different for many of the attributes and alternatives. Copyright © 2011 John Wiley & Sons, Ltd.     

A reference-dependent user equilibrium model for activity-travel scheduling

Existing user equilibrium models of activity-travel scheduling generally fall short in representing travelers’ decision-making processes. The majority have either implicitly or explicitly assumed that travelers follow the principle of utility maximization. This assumption ignores the fact that individuals may be loss–averse when making activity-travel decisions. Allowing for the situation that travelers possess accurate information of the urban-transportation system due to modern technologies, studies on reference-dependent decision-making under near-perfect information are receiving increasing attention. In view of traveler heterogeneity, individuals can be divided into multiple classes according to their reference points. In this paper, we propose a reference-dependent multi-class user equilibrium model for activity-travel scheduling, which can be reformulated as a variational inequality problem. Moreover, comparative analyses are conducted on the equilibrium states between utility-maximization (no reference) and reference-dependency of exogenous and endogenous references. A numerical example regarding combined departure-time and mode choice for commuting is conducted to illustrate the proposed model. The simulated results indicate that reference points and loss aversion attitudes have significant effects on the choice of departure time and mode.     

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.

     

Developing an integrated scobit-based activity participation and time allocation model to explore influence of childcare on women’s time use behaviour

Focusing on the influence of childcare on women’s time use behaviour, this paper develops an integrated model of activity participation and time allocation, where the former is represented based on a scobit model and the latter based on a multi-linear utility function under the utility-maximizing principle. The integration of the scobit model with the time allocation model is done by applying Lee’s transformation. Especially, the scobit model is adopted to relax the assumption, made in the Logit or Probit model, that individuals having indifferent preferences over participation and non-participation are most sensitive to changes in explanatory variables. Using a large-scale time use data (66,839 persons) collected in Japan, the effectiveness of the proposed integrated model is empirically confirmed. It is revealed that the probabilities of participating in compulsory-contracted activities and discretionary activities with the highest sensitivity to changes in explanatory variables are 65 and 81%, respectively. Variances of social childcare variables explain about half of the total variance of the time use for discretionary activities; however, for compulsory-contracted activities, social childcare variables explain only less than 1% of the total variance of activity participation and less than 10% of total variable of time allocation.     

A combined activity/travel choice model for congested road networks with queues

This paper presents a combined activity/travel choice model and proposes a flow-swapping method for obtaining the model's dynamic user equilibrium solution on congested road network with queues. The activities of individuals are characterized by given temporal utility profiles. Three typical activities, which can be observed in morning peak period, namely at-home activity, non-work activity on the way from home to workplace and work-purpose activity, will be considered in the model. The former two activities always occur together with the third obligatory activity. These three activities constitute typical activity/travel patterns in time-space dimension. At the equilibrium, each combined activity/travel pattern, in terms of chosen location/route/departure time, should have identical generalized disutility (or utility) experienced actually. This equilibrium can be expressed as a discrete-time, finite-dimensional variational inequality formulation and then converted to an equivalent "zero-extreme value" minimization problem. An algorithm, which iteratively adjusts the non-work activity location, corresponding route and departure time choices to reach an extreme point of the minimization problem, is proposed. A numerical example with a capacity constrained network is used to illustrate the performance of the proposed model and solution algorithm.     

Effects of task complexity and time pressure on activity-travel choices: heteroscedastic logit model and activity-travel simulator experiment

This paper derives, estimates and applies a discrete choice model of activity-travel behaviour that accommodates potential effects of task complexity and time pressure on decision-making. To the best of our knowledge, this is the first time that both factors (task complexity and time pressure) are jointly captured in a discrete choice model. More specifically, our heteroscedastic logit model captures potential impacts of task complexity and time pressure through the scale of the utility of activity-travel options. We collect data using a novel activity-travel simulator experiment that has been specifically designed with the aim of testing our model. Results are in line with expectations, in that higher levels of task complexity and time pressure are found to result in a smaller scale of utility. In other words, higher levels of task complexity and time pressure lead to more random choice behaviour and as a consequence to less pronounced differences in choice probabilities between alternatives. An empirical illustration suggests that choice probability-differences between models that do and those that do not capture these effects, can be very substantial; this in turn suggests that failing to capture the effects of task complexity and time pressure in discrete choice models of activity travel decision-making might lead to serious bias in forecasts of the effects of transport policies.     

Modelling daily activity program generation considering within-day and day-to-day dynamics in activity-travel behaviour

This paper presents a comprehensive econometric modelling framework for daily activity program generation. It is for day-specific activity program generations of a week-long time span. Activity types considered are 15 generic categories of non-skeletal and flexible activities. Under the daily time budget and non-negativity of participation rate constraints, the models predict optimal sets of frequencies of the activities under consideration (given the average duration of each activity type). The daily time budget considers at-home basic needs and night sleep activities together as a composite activity. The concept of composite activity ensures the dynamics and continuity of time allocation and activity/travel behaviour by encapsulating altogether the activity types that are not of our direct interest in travel demand modelling. Workers’ total working hours (skeletal activity and not a part of the non-skeletal activity time budget) are considered as a variable in the models to accommodate the scheduling effects inside the generation model of non-skeletal activities. Incorporation of previous day’s total executed activities as variables introduces day-to-day dynamics into the activity program generation models. The possibility of zero frequency of any specific activity under consideration is ensured by the Kuhn-Tucker optimality conditions used for formulating the model structure. Models use the concept of random utility maximization approach to derive activity program set. Estimations of the empirical models are done using the 2002–2003 CHASE survey data set collected in Toronto.

Network models for seat allocation on flights

This paper examines the problem of proper (optimal) control over the seat allocation on flights. Given a heterogeneous fleet of aircraft types, multi-leg flights, a number of different passenger categories, and cancelations, an airline's objective is to devise an effective system which aids in setting the seat allocation targets for each category of passengers on each flight. This issue is analyzed by a number of authors in the context of economic, simulation based, probabilistic, and mathematical programming studies. We present an attempt to address this problem from the systems prospective emphasizing characteristics such as: passenger cancelations, multi-leg flights, and rolling tactical planning time horizon. Starting from a very simple network flow models for a single flight with a number of intermediate stops, a number of progressively complex models are presented. The airline flights and the seat allocation system are represented as a generalized network flow model (with gains/losses on arcs) with the objective of flow maximization (profit maximization). This modelling approach does not claim to replace the seat allocation approaches presented in Alstrup et al. (1985), Mayer (1976), Richter (1982), Simpson (1985a), and Wang (1983), but rather construct seat allocations utilizing some of those referenced schemes in a parameter setting mode for a large network model. The objective of this paper is not to report on computational experiments, but to present a modeling approach which seems to be promising, if somewhat speculative.     

Transit Users’ Route‐Choice Modelling in Transit Assignment: A Review

Abstract

This paper reviews the main studies on transit users’ route choice in the context of transit assignment. The studies are categorized into three groups: static transit assignment, within‐day dynamic transit assignment, and emerging approaches. The motivations and behavioural assumptions of these approaches are re‐examined. The first group includes shortest‐path heuristics in all‐or‐nothing assignment, random utility maximization route‐choice models in stochastic assignment, and user equilibrium based assignment. The second group covers within‐day dynamics in transit users’ route choice, transit network formulations, and dynamic transit assignment. The third group introduces the emerging studies on behavioural complexities, day‐to‐day dynamics, and real‐time dynamics in transit users’ route choice. Future research directions are also discussed.