Does the choice model method and/or the data matter?

The opportunity to have seven data sets associated with a stated choice experiment that are very similar in content and design is rare, and provides an opportunity to look in detail at the empirical evidence within and between each data set in the context of a range of discrete choice estimation methods, from multinomial logit to latent class to scale multinomial logit to mixed logit, and the most general model, generalized mixed multinomial logit that accounts for preference and scale heterogeneity. Given the problems associated with data from different countries and time periods, we estimate separate models for each data set, obtaining values of travel time savings that are then updated post estimation to a common dollar for comparative purposes. We also pooled all data sets for a scaled MNL model, treating each data set as a set of three separate utility expressions, but linked to the other data sets through scale heterogeneity. This is not behaviourally appropriate with MNL, latent class or mixed logit. The main question investigated is whether there exists greater synergy in the willingness to pay evidence within model form across data sets compared to across model forms within data sets. The evidence suggests that there is a relatively greater convergence of evidence across the choice models, with the exception of generalized mixed logit, after controlling for data set differences; and there is strong evidence to suggest that differences between data sets do matter.     

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.     

Modelling commuting mode choice with explicit consideration of carpool in the choice set formation

This article investigates the carpool mode choice option in the context of overall commuting mode choice preferences. The article uses a hybrid discrete choice modelling technique to jointly model the consideration of carpooling in the choice set formation as well as commuting mode choice together with the response bias corrections through the accommodation of measurement equations. A cross-nested error structure for the econometric formulation is used to capture correlations among various commuting modes and carpool consideration in the choice set. Empirical models are estimated using a data set collected through a week-long commuter survey in Edmonton, Alberta. The empirical model reveals many behavioural details of commuting mode choice and carpooling. Interestingly, it reveals that interactions between various Travel Demand Management (TDM) tools with the carpooling option can be different at different level of decision making (choice set formation level and final choice making level).     

An Exploration of the Relationship between Timing and Duration of Maintenance Activities

The timing and duration of an activity episode are two important temporal aspects of activity-travel behavior. Understanding the causal relationship between these two variables would be useful in the development of activity-based travel demand modeling systems. This paper investigates the relationship between these two variables by considering two different causal structures – one structure in which time-of-day choice is determined first and influences duration and a second structure in which activity duration is determined first and affects time-of-day choice. These two structures are estimated within a discrete-continuous simultaneous equations framework employing a full-information maximum likelihood methodology that allows error covariance. The estimation is performed separately for commuter and non-commuter samples drawn from a 1996 household travel survey data set from the Tampa Bay area in Florida. The results of the model estimation effort show that the causal structure in which activity duration precedes or affects activity timing (time of day choice) performs better for the non-commuter sample. For the commuter sample, the findings were less conclusive with both causal structures offering equally good statistical measures of fit. In addition, for the commuter sample, all error correlations were found to be zero. These two findings suggest that time of day choice and activity episode duration are only loosely related for the commuter sample, possibly due to the relatively non-discretionary and inflexible work activity and travel.     

Methodological challenges in modelling the choice of mode for a new travel alternative using binary stated choice data – The case of high speed rail in Norway

Binary stated choices between traveller’s current travel mode and a not-yet-existing mode might be used to build a forecasting model with all (current and future) travel alternatives. One challenge with this approach is the identification of the most appropriate inter-alternative error structure of the forecasting model.By critically assessing the practise of translating estimated group scale parameters into nest parameters, we illustrate the inherent limitations of such binary choice data. To overcome some of the problems, we use information from both stated and revealed choice data and propose a model with a cross-nested logit specification, which is estimated on the pooled data set.     

Accounting for stochastic variables in discrete choice models

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

Estimating GEV models with censored data

We examine the problem of estimating parameters for Generalized Extreme Value (GEV) models when one or more alternatives are censored in the sample data, i.e., all decision makers who choose these censored alternatives are excluded from the sample; however, information about the censored alternatives is still available. This problem is common in marketing and revenue management applications, and is essentially an extreme form of choice-based sampling. We review estimators typically used with GEV models, describe why many of these estimators cannot be used for these censored samples, and present two approaches that can be used to estimate parameters associated with censored alternatives. We detail necessary conditions for the identification of parameters associated exclusively with the utility of censored alternatives. These conditions are derived for single-level nested logit, multi-level nested logit and cross-nested logit models. One of the more surprising results shows that alternative specific constants for multiple censored alternatives that belong to the same nest can still be separately identified in nested logit models. Empirical examples based on simulated datasets demonstrate the large-sample consistency of estimators and provide insights into data requirements needed to estimate these models for finite samples.     

Modeling household energy consumption behavior: A comparative analysis

Household decisions on the energy consumption behavior are with regard to the situations that multiple end-uses (e.g., domestic appliances and vehicles) are simultaneously hold and consumed. To deal with this issue, the multiple discrete–continuous models are the best choices from the behavioral perspective. This study compared two types of utility theory-based multiple discrete–continuous models, which are widely applied in the literature: multiple discrete–continuous extreme value (MDCEV) model and the improved resource allocation model based on the multi-linear function (RAM-MLF). A household energy consumption survey was carried out in Beijing in 2010, and the comparative analysis on the performance of these two models is carried out based on the survey data. Results show that the overall performance of RAM-MLF is slightly superior to the MDCEV model due to the incorporation of the inter-end-use interaction and the relative importance of end uses. Moreover, the utility structure by using the satiation parameters to represent the diminishing marginal utility with the increasing consumption shows better fitness than the structure only using the logarithmic function. These findings can be contributed to understand the household energy consumption behavior, while suggest the potential improvement of the model structure, which is mainly focused on the utility form and the decision making mechanism.     

On the goods-activities technical relations in the time allocation theory

In areas like household production and travel choice, time assigned to the different activities plays a key role in addition to consumption as the main variables in utility within the consumer behaviour framework. However, a comprehensive conceptual structure to understand the technological relations between goods consumption and the assignment of time to activities is still lacking. In this paper the problem is reviewed and all possible relations between goods and time are re-formulated. Two general functions are defined and proposed to account for all these relations, forming a new taxonomy for the technical constraints. The resulting consumer behaviour model is used to obtain general expressions for both the value of saving time in constrained activities like travel, and the value of leisure.     

A probability analysis of some spatial interaction models

This paper derives several well-known spatial models in a framework based upon the laws of conditional probability analysis. In particular, it relates the structure of some existing models of trip distribution, elementary residential location and residential location with capacity constraints, to either the multinomial or hypergeometric probability distributions. The major changes from traditional methods for developing these models deal with the derivation and form of the objective function for each interaction model. This alternative analysis reaches a wider audience than that only familiar with entropy methods and leads to several improvements in generality. Further, when population constraints were imposed on residential location models, it was found that the model which developed naturally from the approach taken in the paper contained as a special case the model proposed by Dacey and Norcliffe and not the Wilson model.     

Making use of respondent reported processing information to understand attribute importance: a latent variable scaling approach

In recent years we have seen an explosion of research seeking to understand the role that rules and heuristics might play in improving the predictive capability of discrete choice models, as well as delivering willingness to pay estimates for specific attributes that may (and often do) differ significantly from estimates based on a model specification that assumes all attributes are relevant. This paper adds to that literature in one important way—it explicitly recognises the endogeneity issues raised by typical attribute non-attendance treatments and conditions attribute parameters on underlying unobserved attribute importance ratings. We develop a hybrid model system involving attribute processing and outcome choice models in which latent variables are introduced as explanatory variables in both parts of the model, explaining the answers to attribute processing questions and explaining heterogeneity in marginal sensitivities in the choice model. The resulting empirical model explains how lower latent attribute importance leads to a higher probability of indicating that an attribute was ignored or that it was ranked as less important, as well as increasing the probability of a reduced value for the associated marginal utility coefficient in the choice model. The model does so by treating the answers to information processing questions as dependent rather than explanatory variables, hence avoiding potential risk of endogeneity bias and measurement error.     

核级管道腐蚀数据的概率统计分析

针对核级管道腐蚀环境的复杂性及腐蚀过程的随机性,提出了基于概率统计方法的最大腐蚀深度预测模型。首先对核级管道进行腐蚀失效分析;其次采用广义极值分布模型（GEV）拟合管道最大腐蚀深度数据,用L-矩法计算模型的参数值,分析核级管道腐蚀深度的统计规律;最后引用回归期的概念预测管道最大腐蚀深度。以某核级管道为例,预测其最大腐蚀深度为4.575 1 mm,超过最大腐蚀深度的概率为0.75%。计算结果证明：应用极值理论作统计分析时,广义极值分布模型具有更广的适用性,该研究对分析腐蚀管道的可靠性和安全性具有一定的意义。     

Modeling the competition among air-travel itinerary shares: GEV model development

This study reports the results of aggregate air-travel itinerary share models estimated using data from all East West markets in the United States and Canada. These models predict airline ridership at the itinerary level and aid carriers in long and intermediate term decision-making. Official and comprehensive schedule and bookings data is used to estimate generalized extreme value models capturing the inter-itinerary competition dynamic along three dimensions: time of day, carrier and level-of-service (nonstop, direct, single-connect, double-connect). Models incorporate one, two or three of these dimensions simultaneously. Model structures considered include multinomial logit and variations of the nested logit model (two-level nested logit, two-level weighted nested logit, three-level nested logit, three-level weighted nested logit and nested weighted nested logit). Independent variables for the models measure various itinerary service characteristics such as level-of-service, connection quality, carrier attributes, aircraft type, and departure time. Additionally, the advanced models yield inverse logsum and/or weight parameter estimates capturing the underlying competitive dynamic among air-travel itineraries. The results are intuitive, and the advanced models outperform the more basic specifications with regard to statistical tests and behavioral interpretations, giving insight into the competitive dynamic of air-carrier itineraries.     

Transition choice probabilities and welfare analysis in random utility models with imperfect before–after correlation

Welfare in random utility models is used to be analysed on the basis of only the expectation of the compensating variation. De Palma and Kilani (De Palma, A., Kilani, K., 2011. Transition choice probabilities and welfare analysis in additive random utility models. Economic Theory 46(3), 427–454) have developed a framework for conditional welfare analysis which provides analytic expressions of transition choice probabilities and associated welfare measures. The contribution is of practical relevance in transportation because it allows to compute shares of shifters and non-shifters and attribute benefits to them in a rigorous way. In De Palma and Kilani (2011) the usual assumption of unchanged random terms before and after is made.The paper generalises the framework for conditional welfare analysis to cases of imperfect before–after association of the random terms. The joint before–after distribution of the random terms is introduced with postulated properties in terms of marginal distributions and covariance matrix. Analytic expressions, based on the probability density function and the cumulative distribution function of the joint before–after distribution, and simulation procedures for computation of the transition choice probabilities and the conditional expectations of the compensating variation are provided. Results are specialised for multinomial logit and probit. In the case without income effects, it is proved that the unconditional expectation of the compensating variation depends only on the marginal distributions.The theory is illustrated by a numerical example which refers to a multinomial logit applied to the choice of the transport mode with two specifications, one without and one with income effects. Results show that transition probabilities and conditional welfare measures are affected significantly by the assumption on the before–after correlation. The variability in the transition probabilities across transitions tends to decrease as the before–after correlation decreases. In the extreme case of independent random terms, the conditional expectations of the compensating variation tend to be close to the unconditional expectation.     

Stochastic user equilibrium with equilibrated choice sets: Part I – Model formulations under alternative distributions and restrictions

The aim of this paper is to remove the known limitations of Deterministic and Stochastic User Equilibrium (DUE and SUE), namely that only routes with the minimum cost are used in DUE, and that all permitted routes are used in SUE regardless of their costs. We achieve this by combining the advantages of the two principles, namely the definition of unused routes in DUE and of mis-perception in SUE, such that the resulting choice sets of used routes are equilibrated. Two model families are formulated to address this issue: the first is a general version of SUE permitting bounded and discrete error distributions; the second is a Restricted SUE model with an additional constraint that must be satisfied for unused paths. The overall advantage of these model families consists in their ability to combine the unused routes with the use of random utility models for used routes, without the need to pre-specify the choice set. We present model specifications within these families, show illustrative examples, evaluate their relative merits, and identify key directions for further research.     

On the cost of misperceived travel time variability

Because individuals may misperceive travel time distributions, using the implied reduced form of the scheduling model might fall short of capturing all costs of travel time variability. We reformulate a general scheduling model employing rank-dependent utility theory and derive two special cases as econometric specifications to study these uncaptured costs. It is found that reduced-form expected cost functions still have a mean–variance form when misperception is considered, but the value of travel time variability is higher. We estimate these two models with stated-preference data and calculate the empirical cost of misperception. We find that: (i) travelers are mostly pessimistic and thus tend to choose departure times too early to achieve a minimum cost, (ii) scheduling preferences elicited using a stated-choice method can be relatively biased if probability weighting is not considered, and (iii) the extra cost of misperceiving the travel time distribution might be nontrivial when time is valued differently over the time of day and is substantial for some people.     

A comprehensive analysis of household transportation expenditures relative to other goods and services: an application to United States consumer expenditure data

This paper proposes a multiple discrete continuous nested extreme value (MDCNEV) model to analyze household expenditures for transportation-related items in relation to a host of other consumption categories. The model system presented in this paper is capable of providing a comprehensive assessment of how household consumption patterns (including savings) would be impacted by increases in fuel prices or any other household expense. The MDCNEV model presented in this paper is estimated on disaggregate consumption data from the 2002 Consumer Expenditure Survey data of the United States. Model estimation results show that a host of household and personal socio-economic, demographic, and location variables affect the proportion of monetary resources that households allocate to various consumption categories. Sensitivity analysis conducted using the model demonstrates the applicability of the model for quantifying consumption adjustment patterns in response to rising fuel prices. It is found that households adjust their food consumption, vehicular purchases, and savings rates in the short run. In the long term, adjustments are also made to housing choices (expenses), calling for the need to ensure that fuel price effects are adequately reflected in integrated microsimulation models of land use and travel.     

A hyperpath-based network generalized extreme-value model for route choice under uncertainties

Previous route choice studies treated uncertainties as randomness; however, it is argued that other uncertainties exist beyond random effects. As a general modeling framework for route choice under uncertainties, this paper presents a model of route choice that incorporates hyperpath and network generalized extreme-value-based link choice models. Accounting for the travel time uncertainty, numerical studies of specified models within the proposed framework are conducted. The modeling framework may be helpful in various research contexts dealing with both randomness and other non-probabilistic uncertainties that cannot be exactly perceived.     

A methodological framework for the study of residential location and travel-to-work mode choice under central and suburban employment destination patterns

The aim of this paper is to contribute to the methodological questions that arise from the study of the simultaneous choice of residential location and travel-to-work mode under central and non-central or suburban employment patterns. Geographic information system (GIS) visualisations and network analysis are used to generate a choice set based on the definition of spatially aggregated alternatives. Discrete choice models specified as cross-nested logit (CNL) are estimated for each of the two different types of employment patterns and direct and cross elasticities are presented. The analysis is carried out for the Greater Dublin Area, a metropolitan region that is a recent example of rapid employment suburbanisation and residential sprawl in a European context. A simulation exercise, tracing the extent of mode switching and location switching behaviour is undertaken using the framework developed.     

Can mixed logit reveal the actual data generating process? Some implications for environmental assessment

Recent advances in the specification of the utility function of mixed logit models allow the analyst, in principle, to consider a vast variety of individual heterogeneity. Nevertheless, when estimating the model it is common practice to experience severe difficulties in discriminating between different specifications to infer the “true” data generating process. We investigate possible sources for this difficulty focusing on the confounding effects inherent in two basic assumptions of discrete choice model utilities: linearity in the parameters and added error terms. We analyse the role of these assumptions in giving rise to confounding effects and why this increases the difficulty of discriminating among different structures. Finally, we investigate how these problems may affect benefit appraisal using these models. Empirical evidence is provided for two different environmental contexts and a more typical transport context using various kinds of data.