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The Econometrics of Search

Author

Listed:
  • S R Lerman

    (Department of Civil Engineering, Massachusetts Institute of Technology, Cambridge, MA 02139, USA)

  • H S Mahmassani

    (Department of Civil Engineering, University of Texas at Austin, Austin, TX 78712, USA)

Abstract

Many urban activity and location decisions can be viewed as the outcomes of sequential search processes. In this paper are addressed the special econometric aspects associated with the analysis of observations on such processes. Four distinct informational situations of particular relevance to search phenomena are identified, each one corresponding to different data-availability conditions. The likelihood functions appropriate for estimating the parameters of search models in each one of those informational situations are derived. Special cases in which these likelihood functions appear to be computationally tractable are also indicated in the appendix.

Suggested Citation

  • S R Lerman & H S Mahmassani, 1985. "The Econometrics of Search," Environment and Planning A, , vol. 17(8), pages 1009-1024, August.
    • Handle: RePEc:sae:envira:v:17:y:1985:i:8:p:1009-1024
    DOI: 10.1068/a171009
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    References listed on IDEAS

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    1. Rothschild, Michael, 1974. "Searching for the Lowest Price When the Distribution of Prices Is Unknown," Journal of Political Economy, University of Chicago Press, vol. 82(4), pages 689-711, July/Aug..
    2. Hausman, Jerry A & Wise, David A, 1978. "A Conditional Probit Model for Qualitative Choice: Discrete Decisions Recognizing Interdependence and Heterogeneous Preferences," Econometrica, Econometric Society, vol. 46(2), pages 403-426, March.
    3. Manski, Charles F & Lerman, Steven R, 1977. "The Estimation of Choice Probabilities from Choice Based Samples," Econometrica, Econometric Society, vol. 45(8), pages 1977-1988, November.
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    Cited by:

    1. Zolfaghari, Alireza & Sivakumar, Aruna & Polak, John, 2013. "Simplified probabilistic choice set formation models in a residential location choice context," Journal of choice modelling, Elsevier, vol. 9(C), pages 3-13.
    2. Chorus, Caspar G., 2014. "Benefit of adding an alternative to one׳s choice set: A regret minimization perspective," Journal of choice modelling, Elsevier, vol. 13(C), pages 49-59.
    3. Chorus, Caspar G. & Arentze, Theo A. & Molin, Eric J.E. & Timmermans, Harry J.P. & Van Wee, Bert, 2006. "The value of travel information: Decision strategy-specific conceptualizations and numerical examples," Transportation Research Part B: Methodological, Elsevier, vol. 40(6), pages 504-519, July.

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