IDEAS home Printed from https://ideas.repec.org/a/spr/demogr/v56y2019i5d10.1007_s13524-019-00810-5.html
   My bibliography  Save this article

Choice Set Formation in Residential Mobility and Its Implications for Segregation Dynamics

Author

Listed:
  • Elizabeth Bruch

    (University of Michigan)

  • Joffre Swait

    (Erasmus University Rotterdam)

Abstract

We develop and estimate a statistical model of neighborhood choice that draws on insights from cognitive science and decision theory as well as qualitative studies of housing search. The model allows for a sequential decision process and the possibility that people consider a small and selective subset of all potential destinations. When combined with data from the Los Angeles Family and Neighborhood Survey, our model reveals that affordability constraints and households’ tendency toward short-distance moves lead blacks and Hispanics to have racially stratified choice sets in which their own group is disproportionately represented. We use an agent-based model to assess how racially stratified choice sets contribute to segregation outcomes. Our results show that cognitive decision strategies can amplify patterns of segregation and inequality.

Suggested Citation

  • Elizabeth Bruch & Joffre Swait, 2019. "Choice Set Formation in Residential Mobility and Its Implications for Segregation Dynamics," Demography, Springer;Population Association of America (PAA), vol. 56(5), pages 1665-1692, October.
  • Handle: RePEc:spr:demogr:v:56:y:2019:i:5:d:10.1007_s13524-019-00810-5
    DOI: 10.1007/s13524-019-00810-5
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s13524-019-00810-5
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.

    File URL: https://libkey.io/10.1007/s13524-019-00810-5?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. William Frey & Reynolds Farley, 1996. "Latino, Asian, and black segregation in U.S. metropolitan areas: Are multiethnic metros different," Demography, Springer;Population Association of America (PAA), vol. 33(1), pages 35-50, February.
    2. Shugan, Steven M, 1980. "The Cost of Thinking," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 7(2), pages 99-111, Se.
    3. Bayer, Patrick & McMillan, Robert & Rueben, Kim S., 2004. "What drives racial segregation? New evidence using Census microdata," Journal of Urban Economics, Elsevier, vol. 56(3), pages 514-535, November.
    4. Jennifer Darrah & Stefanie DeLuca, 2014. "“Living Here has Changed My Whole Perspective”: How Escaping Inner‐City Poverty Shapes Neighborhood and Housing Choice," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 33(2), pages 350-384, March.
    5. Train,Kenneth E., 2009. "Discrete Choice Methods with Simulation," Cambridge Books, Cambridge University Press, number 9780521766555, January.
    6. McFadden, Daniel, 1999. "Rationality for Economists?," Journal of Risk and Uncertainty, Springer, vol. 19(1-3), pages 73-105, December.
    7. Scott South & Kyle Crowder & Jeremy Pais, 2011. "Metropolitan Structure and Neighborhood Attainment: Exploring Intermetropolitan Variation in Racial Residential Segregation," Demography, Springer;Population Association of America (PAA), vol. 48(4), pages 1263-1292, November.
    8. Monika Piazzesi & Martin Schneider & Johannes Stroebel, 2020. "Segmented Housing Search," American Economic Review, American Economic Association, vol. 110(3), pages 720-759, March.
    9. Swait, Joffre, 2001. "Choice set generation within the generalized extreme value family of discrete choice models," Transportation Research Part B: Methodological, Elsevier, vol. 35(7), pages 643-666, August.
    10. Louviere,Jordan J. & Hensher,David A. & Swait,Joffre D. With contributions by-Name:Adamowicz,Wiktor, 2000. "Stated Choice Methods," Cambridge Books, Cambridge University Press, number 9780521788304.
    11. Hauser, John R & Wernerfelt, Birger, 1990. "An Evaluation Cost Model of Consideration Sets," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 16(4), pages 393-408, March.
    12. Esther Havekes & Michael Bader & Maria Krysan, 2016. "Realizing Racial and Ethnic Neighborhood Preferences? Exploring the Mismatches Between What People Want, Where They Search, and Where They Live," Population Research and Policy Review, Springer;Southern Demographic Association (SDA), vol. 35(1), pages 101-126, February.
    13. Caroline Hoxby & Christopher Avery, 2013. "The Missing "One-Offs": The Hidden Supply of High-Achieving, Low-Income Students," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 44(1 (Spring), pages 1-65.
    14. Robert Sampson & Patrick Sharkey, 2008. "Neighborhood selection and the social reproduction of concentrated racial inequality," Demography, Springer;Population Association of America (PAA), vol. 45(1), pages 1-29, February.
    15. Barrett Lee & Peter Wood, 1991. "Is neighborhood racial succession place-specific?," Demography, Springer;Population Association of America (PAA), vol. 28(1), pages 21-40, February.
    16. W A V Clark & T R Smith, 1982. "Housing Market Search Behavior and Expected Utility Theory: 2. The Process of Search," Environment and Planning A, , vol. 14(6), pages 717-737, June.
    17. John R. Logan & Hyoung-jin Shin, 2016. "Birds of a Feather: Social Bases of Neighborhood Formation in Newark, New Jersey, 1880," Demography, Springer;Population Association of America (PAA), vol. 53(4), pages 1085-1108, August.
    18. Swait, Joffre & Ben-Akiva, Moshe, 1987. "Empirical test of a constrained choice discrete model: Mode choice in São Paulo, Brazil," Transportation Research Part B: Methodological, Elsevier, vol. 21(2), pages 103-115, April.
    19. Barrett Lee & R. Oropesa & James Kanan, 1994. "Neighborhood Context and Residential Mobility," Demography, Springer;Population Association of America (PAA), vol. 31(2), pages 249-270, May.
    20. Swait, Joffre & Ben-Akiva, Moshe, 1987. "Incorporating random constraints in discrete models of choice set generation," Transportation Research Part B: Methodological, Elsevier, vol. 21(2), pages 91-102, April.
    21. T R Smith & W A V Clark, 1982. "Housing Market Search Behavior and Expected Utility Theory: 1. Measuring Preferences for Housing," Environment and Planning A, , vol. 14(5), pages 681-698, May.
    22. John Logan & Richard Alba, 1993. "Locational returns to human capital: Minority access to suburban community resources," Demography, Springer;Population Association of America (PAA), vol. 30(2), pages 243-268, May.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Jared N. Schachner & Robert J. Sampson, 2020. "Skill-Based Contextual Sorting: How Parental Cognition and Residential Mobility Produce Unequal Environments for Children," Demography, Springer;Population Association of America (PAA), vol. 57(2), pages 675-703, April.
    2. Wolf, Levi John, 2022. "Confounded Local Inference: Extending Local Moran Statistics to Handle Confounding," SocArXiv kz5dq, Center for Open Science.
    3. Janna Bergsvik & Sara Cools & Rannveig K. Hart, 2023. "Explaining Residential Clustering of Large Families," European Journal of Population, Springer;European Association for Population Studies, vol. 39(1), pages 1-28, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Joffre Swait & Tülin Erdem, 2007. "Brand Effects on Choice and Choice Set Formation Under Uncertainty," Marketing Science, INFORMS, vol. 26(5), pages 679-697, 09-10.
    2. Cascetta, Ennio & Papola, Andrea, 2009. "Dominance among alternatives in random utility models," Transportation Research Part A: Policy and Practice, Elsevier, vol. 43(2), pages 170-179, February.
    3. Jared N. Schachner & Robert J. Sampson, 2020. "Skill-Based Contextual Sorting: How Parental Cognition and Residential Mobility Produce Unequal Environments for Children," Demography, Springer;Population Association of America (PAA), vol. 57(2), pages 675-703, April.
    4. Kassahun, Habtamu Tilahun & Swait, Joffre & Jacobsen, Jette Bredahl, 2021. "Distortions in willingness-to-pay for public goods induced by endemic distrust in institutions," Journal of choice modelling, Elsevier, vol. 39(C).
    5. Swait, Joffre & Brigden, Neil & Johnson, Richard D., 2014. "Categories shape preferences: A model of taste heterogeneity arising from categorization of alternatives," Journal of choice modelling, Elsevier, vol. 13(C), pages 3-23.
    6. Swait, Joffre & Adamowicz, Wiktor, 2001. "Choice Environment, Market Complexity, and Consumer Behavior: A Theoretical and Empirical Approach for Incorporating Decision Complexity into Models of Consumer Choice," Organizational Behavior and Human Decision Processes, Elsevier, vol. 86(2), pages 141-167, November.
    7. Matthew Desmond & Tracey Shollenberger, 2015. "Forced Displacement From Rental Housing: Prevalence and Neighborhood Consequences," Demography, Springer;Population Association of America (PAA), vol. 52(5), pages 1751-1772, October.
    8. Helmers, Christian & Krishnan, Pramila & Patnam, Manasa, 2019. "Attention and saliency on the internet: Evidence from an online recommendation system," Journal of Economic Behavior & Organization, Elsevier, vol. 161(C), pages 216-242.
    9. Hauser, John R., 2014. "Consideration-set heuristics," Journal of Business Research, Elsevier, vol. 67(8), pages 1688-1699.
    10. Swait, Joffre, 2009. "Choice models based on mixed discrete/continuous PDFs," Transportation Research Part B: Methodological, Elsevier, vol. 43(7), pages 766-783, August.
    11. Swait, Joffre, 2001. "A non-compensatory choice model incorporating attribute cutoffs," Transportation Research Part B: Methodological, Elsevier, vol. 35(10), pages 903-928, November.
    12. Carson, Richard T. & Louviere, Jordan J., 2014. "Statistical properties of consideration sets," Journal of choice modelling, Elsevier, vol. 13(C), pages 37-48.
    13. Yi-Chun Chen & Dmitry Mitrofanov, 2023. "A Nonparametric Stochastic Set Model: Identification, Optimization, and Prediction," Papers 2302.04354, arXiv.org, revised Jul 2023.
    14. Jordan Louviere & Kenneth Train & Moshe Ben-Akiva & Chandra Bhat & David Brownstone & Trudy Cameron & Richard Carson & J. Deshazo & Denzil Fiebig & William Greene & David Hensher & Donald Waldman, 2005. "Recent Progress on Endogeneity in Choice Modeling," Marketing Letters, Springer, vol. 16(3), pages 255-265, December.
    15. Leite Mariante, Gabriel & Ma, Tai-Yu & Van Acker, Véronique, 2018. "Modeling discretionary activity location choice using detour factors and sampling of alternatives for mixed logit models," Journal of Transport Geography, Elsevier, vol. 72(C), pages 151-165.
    16. Fernando San Miguel & Mandy Ryan & Mabelle Amaya‐Amaya, 2005. "‘Irrational’ stated preferences: a quantitative and qualitative investigation," Health Economics, John Wiley & Sons, Ltd., vol. 14(3), pages 307-322, March.
    17. Noli Brazil, 2016. "Large-Scale Urban Riots and Residential Segregation: A Case Study of the 1960s U.S. Riots," Demography, Springer;Population Association of America (PAA), vol. 53(2), pages 567-595, April.
    18. Chorus, Caspar G. & Timmermans, Harry J.P., 2009. "Measuring user benefits of changes in the transport system when traveler awareness is limited," Transportation Research Part A: Policy and Practice, Elsevier, vol. 43(5), pages 536-547, June.
    19. Bhat, Chandra R., 2015. "A comprehensive dwelling unit choice model accommodating psychological constructs within a search strategy for consideration set formation," Transportation Research Part B: Methodological, Elsevier, vol. 79(C), pages 161-188.
    20. Murthi, B.P.S. & Rao, Ram C., 2012. "Price Awareness and Consumers’ Use of Deals in Brand Choice," Journal of Retailing, Elsevier, vol. 88(1), pages 34-46.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:demogr:v:56:y:2019:i:5:d:10.1007_s13524-019-00810-5. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.