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Relative advantage maximisation as a model of context dependence for binary choice data

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  • Leong, Waiyan
  • Hensher, David A.

Abstract

In recent years we have seen a burgeoning literature, within a discrete choice modelling setting, focussing on capturing increased behavioural realism in decision making through the use of alternative specifications of the utility function. One notable example is the increasing popularity of the random regret minimisation (RRM) model, in which respondents are assumed to choose the alternative that minimises the negative emotions associated with decision making.

Suggested Citation

  • Leong, Waiyan & Hensher, David A., 2014. "Relative advantage maximisation as a model of context dependence for binary choice data," Journal of choice modelling, Elsevier, vol. 11(C), pages 30-42.
    • Handle: RePEc:eee:eejocm:v:11:y:2014:i:c:p:30-42
    DOI: 10.1016/j.jocm.2014.05.002
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    References listed on IDEAS

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    1. Caspar Chorus, 2011. "Random Regret Minimization: An Overview of Model Properties and Empirical Evidence," Transport Reviews, Taylor & Francis Journals, vol. 32(1), pages 75-92, July.
    2. Mara Thiene & Marco Boeri & Caspar Chorus, 2012. "Random Regret Minimization: Exploration of a New Choice Model for Environmental and Resource Economics," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 51(3), pages 413-429, March.
    3. Daniel Kahneman & Amos Tversky, 2013. "Prospect Theory: An Analysis of Decision Under Risk," World Scientific Book Chapters, in: Leonard C MacLean & William T Ziemba (ed.), HANDBOOK OF THE FUNDAMENTALS OF FINANCIAL DECISION MAKING Part I, chapter 6, pages 99-127, World Scientific Publishing Co. Pte. Ltd..
    4. Moshe Ben-Akiva & Joffre Swait, 1986. "The Akaike Likelihood Ratio Index," Transportation Science, INFORMS, vol. 20(2), pages 133-136, May.
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    6. Rose, John M. & Bliemer, Michiel C.J. & Hensher, David A. & Collins, Andrew T., 2008. "Designing efficient stated choice experiments in the presence of reference alternatives," Transportation Research Part B: Methodological, Elsevier, vol. 42(4), pages 395-406, May.
    7. Chorus, Caspar G. & Arentze, Theo A. & Timmermans, Harry J.P., 2008. "A Random Regret-Minimization model of travel choice," Transportation Research Part B: Methodological, Elsevier, vol. 42(1), pages 1-18, January.
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    Cited by:

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    4. Balbontin, Camila & Hensher, David A. & Collins, Andrew T., 2019. "How to better represent preferences in choice models: The contributions to preference heterogeneity attributable to the presence of process heterogeneity," Transportation Research Part B: Methodological, Elsevier, vol. 122(C), pages 218-248.

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