IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this article or follow this journal

Development and estimation of a semi-compensatory model with a flexible error structure

  • Kaplan, Sigal
  • Shiftan, Yoram
  • Bekhor, Shlomo
Registered author(s):

    In decisions involving many alternatives, such as residential choice, individuals conduct a two-stage decision process, consisting of eliminating non-viable alternatives and choice from the retained choice set. In light of the potential of semi-compensatory discrete choice models to mathematically represent such decisions, research is inching ahead with the aim of alleviating their high computational complexity and their severe restrictive assumptions. To date, still a major barrier for the implementation of semi-compensatory models is their underlying assumption of independently and identically distributed error terms across alternatives at the choice stage. This study relaxes the assumption by introducing nested substitution patterns and alternatively random taste heterogeneity at the choice stage, thus equating the structural flexibility of semi-compensatory models to their compensatory counterparts. The proposed model is applied to off-campus rental apartment choice by students. Results show the feasibility and importance of introducing a flexible error structure into semi-compensatory models.

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

    File URL: http://www.sciencedirect.com/science/article/pii/S0191261511001445
    Download Restriction: Full text for ScienceDirect subscribers only

    As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

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

    Volume (Year): 46 (2012)
    Issue (Month): 2 ()
    Pages: 291-304

    as
    in new window

    Handle: RePEc:eee:transb:v:46:y:2012:i:2:p:291-304
    Contact details of provider: Web page: http://www.elsevier.com/wps/find/journaldescription.cws_home/548/description#description

    Order Information: Postal: http://www.elsevier.com/wps/find/supportfaq.cws_home/regional
    Web: https://shop.elsevier.com/order?id=548&ref=548_01_ooc_1&version=01

    References listed on IDEAS
    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

    as in new window
    1. Kaplan, Sigal & Bekhor, Shlomo & Shiftan, Yoram, 2011. "Eliciting and estimating reservation price: A semi-compensatory approach," Journal of Business Research, Elsevier, vol. 64(1), pages 45-50, January.
    2. Oswald T J Devisch & Harry J P Timmermans & Theo A Arentze & Aloys W J Borgers, 2009. "An agent-based model of residential choice dynamics in nonstationary housing markets," Environment and Planning A, Pion Ltd, London, vol. 41(8), pages 1997-2013, August.
    3. repec:cup:cbooks:9780521747387 is not listed on IDEAS
    4. Daniel McFadden & Kenneth Train, 2000. "Mixed MNL models for discrete response," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 15(5), pages 447-470.
    5. Bhat, Chandra R. & Srinivasan, Sivaramakrishnan, 2005. "A multidimensional mixed ordered-response model for analyzing weekend activity participation," Transportation Research Part B: Methodological, Elsevier, vol. 39(3), pages 255-278, March.
    6. Bhat, Chandra R. & Guo, Jessica, 2004. "A mixed spatially correlated logit model: formulation and application to residential choice modeling," Transportation Research Part B: Methodological, Elsevier, vol. 38(2), pages 147-168, February.
    7. J. A. Hausman & D. A. Wise, 1976. "A Conditional Profit Model for Qualitative Choice: Discrete Decisions Recognizing Interdependence and Heterogeneous Preferences," Working papers 173, Massachusetts Institute of Technology (MIT), Department of Economics.
    8. Bhat, Chandra R. & Srinivasan, Sivaramakrishnan & Sen, Sudeshna, 2006. "A joint model for the perfect and imperfect substitute goods case: Application to activity time-use decisions," Transportation Research Part B: Methodological, Elsevier, vol. 40(10), pages 827-850, December.
    9. 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.
    10. Basar, Gözen & Bhat, Chandra, 2004. "A parameterized consideration set model for airport choice: an application to the San Francisco Bay Area," Transportation Research Part B: Methodological, Elsevier, vol. 38(10), pages 889-904, December.
    11. Lussier, Denis A & Olshavsky, Richard W, 1979. " Task Complexity and Contingent Processing in Brand Choice," Journal of Consumer Research, University of Chicago Press, vol. 6(2), pages 154-65, Se.
    12. Darren P Smith & Louise Holt, 2007. "Studentification and ‘apprentice’ gentrifiers within Britain’s provincial towns and cities: extending the meaning of gentrification," Environment and Planning A, Pion Ltd, London, vol. 39(1), pages 142-161, January.
    13. repec:cup:cbooks:9780521766555 is not listed on IDEAS
    14. Pinjari, Abdul Rawoof & Bhat, Chandra R. & Hensher, David A., 2009. "Residential self-selection effects in an activity time-use behavior model," Transportation Research Part B: Methodological, Elsevier, vol. 43(7), pages 729-748, August.
    15. Pinjari, Abdul Rawoof & Bhat, Chandra, 2010. "A multiple discrete-continuous nested extreme value (MDCNEV) model: Formulation and application to non-worker activity time-use and timing behavior on weekdays," Transportation Research Part B: Methodological, Elsevier, vol. 44(4), pages 562-583, May.
    16. Pinjari, Abdul Rawoof, 2011. "Generalized extreme value (GEV)-based error structures for multiple discrete-continuous choice models," Transportation Research Part B: Methodological, Elsevier, vol. 45(3), pages 474-489, March.
    17. Zhu, Wei & Timmermans, Harry, 2010. "Modeling simplifying information processing strategies in conjoint experiments," Transportation Research Part B: Methodological, Elsevier, vol. 44(6), pages 764-780, July.
    18. Cantillo, Víctor & Ortúzar, Juan de Dios, 2005. "A semi-compensatory discrete choice model with explicit attribute thresholds of perception," Transportation Research Part B: Methodological, Elsevier, vol. 39(7), pages 641-657, August.
    19. Cantillo, Víctor & Heydecker, Benjamin & de Dios Ortúzar, Juan, 2006. "A discrete choice model incorporating thresholds for perception in attribute values," Transportation Research Part B: Methodological, Elsevier, vol. 40(9), pages 807-825, November.
    20. Sigal Kaplan & Shlomo Bekhor & Yoram Shiftan, 2011. "Development and estimation of a semi-compensatory residential choice model based on explicit choice protocols," The Annals of Regional Science, Springer, vol. 47(1), pages 51-80, August.
    21. Cynthia Chen & Jason Chen & Harry Timmermans, 2009. "Historical deposition influence in residential location decisions: a distance-based GEV model for spatial correlation," Environment and Planning A, Pion Ltd, London, vol. 41(11), pages 2760-2777, November.
    22. Swait, Joffre, 2001. "A non-compensatory choice model incorporating attribute cutoffs," Transportation Research Part B: Methodological, Elsevier, vol. 35(10), pages 903-928, November.
    23. Bhat, Chandra R. & Sen, Sudeshna & Eluru, Naveen, 2009. "The impact of demographics, built environment attributes, vehicle characteristics, and gasoline prices on household vehicle holdings and use," Transportation Research Part B: Methodological, Elsevier, vol. 43(1), pages 1-18, January.
    24. Chattopadhyay, Sudip, 2000. "The effectiveness of McFaddens's nested logit model in valuing amenity improvement," Regional Science and Urban Economics, Elsevier, vol. 30(1), pages 23-43, January.
    25. Martínez, Francisco & Aguila, Felipe & Hurtubia, Ricardo, 2009. "The constrained multinomial logit: A semi-compensatory choice model," Transportation Research Part B: Methodological, Elsevier, vol. 43(3), pages 365-377, March.
    26. Phil Hubbard, 2008. "Regulating the social impacts of studentification: a Loughborough case study," Environment and Planning A, Pion Ltd, London, vol. 40(2), pages 323-341, February.
    27. 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.
    28. 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.
    29. Dennis H. Gensch, 1987. "A Two-Stage Disaggregate Attribute Choice Model," Marketing Science, INFORMS, vol. 6(3), pages 223-239.
    Full references (including those not matched with items on IDEAS)

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:eee:transb:v:46:y:2012:i:2:p:291-304. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei)

    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 references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.

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

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.