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The role of the reference alternative in the specification of asymmetric discrete choice models

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  • Masiero, Lorenzo
  • Rose, John M.

Abstract

Within the discrete choice modelling literature, there has been growing interest in including reference alternatives within stated choice survey tasks. This paper analyses asymmetric discrete choice models by comparing specifications expressed as deviations from the reference point and specifications expressed in absolute values. The results suggest that the most suitable specification reflects the way the attribute levels are presented to respondents, either in terms of deviations or absolute values. Results further suggest significant differences on the willingness to pay and willingness to accept estimates obtained from the two different specifications proposed.

Suggested Citation

  • Masiero, Lorenzo & Rose, John M., 2013. "The role of the reference alternative in the specification of asymmetric discrete choice models," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 53(C), pages 83-92.
  • Handle: RePEc:eee:transe:v:53:y:2013:i:c:p:83-92
    DOI: 10.1016/j.tre.2013.03.001
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    Cited by:

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    2. Sotirios Thanos & Maria Kamargianni & Andreas Schäfer, 2018. "Car Travel Demand: Spillovers and Asymmetric Price Effects in a Spatial Setting," Transportation Science, INFORMS, vol. 52(3), pages 621-636, June.
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    4. Jawaher Binsuwadan & Gerard De Jong & Richard Batley & Phill Wheat, 2022. "The value of travel time savings in freight transport: a meta-analysis," Transportation, Springer, vol. 49(4), pages 1183-1209, August.
    5. Ferrari, Paolo, 2015. "Dynamic cost functions and freight transport modal split evolution," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 77(C), pages 115-134.
    6. Milad Haghani & Michiel C. J. Bliemer & John M. Rose & Harmen Oppewal & Emily Lancsar, 2021. "Hypothetical bias in stated choice experiments: Part II. Macro-scale analysis of literature and effectiveness of bias mitigation methods," Papers 2102.02945, arXiv.org.
    7. Ferrari, Paolo, 2014. "The dynamics of modal split for freight transport," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 70(C), pages 163-176.
    8. Xueyan Li & Jing Li, 2021. "A freight transport price optimization model with multi bounded-rational customers," Transportation, Springer, vol. 48(1), pages 477-504, February.
    9. Feo-Valero, María & Arencibia, Ana Isabel & Román, Concepción, 2016. "Analyzing discrepancies between willingness to pay and willingness to accept for freight transport attributes," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 89(C), pages 151-164.
    10. Ding, Hongxing & Yang, Hai & Xu, Hongli & Li, Ting, 2023. "Status quo-dependent user equilibrium model with adaptive value of time," Transportation Research Part B: Methodological, Elsevier, vol. 170(C), pages 77-90.
    11. Mahmud, Asif & Gayah, Vikash V. & Paleti, Rajesh, 2022. "A latent choice model to analyze the role of preliminary preferences in shaping observed choices," Transportation Research Part B: Methodological, Elsevier, vol. 161(C), pages 95-108.
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    13. Hongli Xu & Hai Yang & Jing Zhou & Yafeng Yin, 2017. "A Route Choice Model with Context-Dependent Value of Time," Transportation Science, INFORMS, vol. 51(2), pages 536-548, May.

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    More about this item

    Keywords

    Stated choice experiments; Reference alternative; Preference asymmetry; Willingness to pay;
    All these keywords.

    JEL classification:

    • C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities

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