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Accommodating flexible substitution patterns in multi-dimensional choice modeling: formulation and application to travel mode and departure time choice

  • Bhat, Chandra R.
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    The nested logit model has been used extensively to model multi-dimensional choice situations. A drawback of the nested logit model is that it does not allow choice alternatives to share common unobserved attributes along all the dimensions characterizing the multidimensional choice context. This paper formulates a mixed multinomial logit structure that accommodates unobserved correlation across both dimensions in a two-dimensional choice context. The mixed multinomial logit structure is parsimonious in the number of parameters to be estimated and is also relatively easy to estimate using simulation methods. The mixed multinomial logit model is applied to an analysis of travel mode and departure time choice for home-based social-recreational trips using data drawn from the 1990 San Francisco Bay Area household survey. The empirical results underscore the need to capture unobserved attributes along both the mode and departure time dimensions, both for improved data fit as well as for more realistic policy evaluations of transportation control measures.

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    Article provided by Elsevier in its journal Transportation Research Part B: Methodological.

    Volume (Year): 32 (1998)
    Issue (Month): 7 (September)
    Pages: 455-466

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    Handle: RePEc:eee:transb:v:32:y:1998:i:7:p:455-466
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    1. Koppelman, Frank S. & Pas, Eric I., 1986. "Multidimensional choice model transferability," Transportation Research Part B: Methodological, Elsevier, vol. 20(4), pages 321-330, August.
    2. Horowitz, Joel L., 1991. "Reconsidering the multinomial probit model," Transportation Research Part B: Methodological, Elsevier, vol. 25(6), pages 433-438, December.
    3. Small, Kenneth A, 1982. "The Scheduling of Consumer Activities: Work Trips," American Economic Review, American Economic Association, vol. 72(3), pages 467-79, June.
    4. David Revelt & Kenneth Train, 1998. "Mixed Logit With Repeated Choices: Households' Choices Of Appliance Efficiency Level," The Review of Economics and Statistics, MIT Press, vol. 80(4), pages 647-657, November.
    5. Mannering, Fred L., 1989. "Poisson analysis of commuter flexibility in changing routes and departure times," Transportation Research Part B: Methodological, Elsevier, vol. 23(1), pages 53-60, February.
    6. Bhat, Chandra R. & Koppelman, Frank S., 1993. "A conceptual framework of individual activity program generation," Transportation Research Part A: Policy and Practice, Elsevier, vol. 27(6), pages 433-446, November.
    7. Lee, L-F., 1990. "On Efficiency of Methods of Simulated Moments and Maximum Simulated Likelihood Estimation of Discrete Response Models," Papers 260, Minnesota - Center for Economic Research.
    8. 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.
    9. Bhat, Chandra R., 1995. "A heteroscedastic extreme value model of intercity travel mode choice," Transportation Research Part B: Methodological, Elsevier, vol. 29(6), pages 471-483, December.
    10. Train, Kenneth, 1980. "A Structured Logit Model of Auto Ownership and Mode Choice," Review of Economic Studies, Wiley Blackwell, vol. 47(2), pages 357-70, January.
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