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Behavioral Housing Search Choice Set Formation

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  • Taha H. Rashidi
  • Abolfazl (Kouros) Mohammadian

Abstract

The housing search process, a topic of interest to both practitioners and researchers, starts with an alternative formation and screening practice. Due to the limitation of cognitive capacity, household members at this level evaluate potential alternatives based on many factors, such as lifestyle, preferences, and so on, to form a manageable choice set. This article attempts to provide a detailed study of this screening and filtering practice to develop a modeling framework that can replicate the choice set formation process. In order to show the potential of the method, one prospective decision criteria—the average desired commute to work distance—is considered the potential attribute that the household evaluates for feasible housing alternatives. It is postulated that alternatives will only be included in the choice set if the average work distance satisfies the household distance threshold. This article explores the viability of using proportional hazard models in the housing search process. Some of the specifications of hazard-based models that are typically used on temporal data are examined on average work distance. Several household sociodemographic attributes from eight waves of the Seattle Metropolitan Area’s Puget Sound Transportation Panel (PSTP) are utilized for model estimation, along with built environment variables, characteristics of the supply side of the market, and several other economic indicators. The approach presented in this article provides a remedy for the large choice set problem typically faced in discrete choice modeling.

Suggested Citation

  • Taha H. Rashidi & Abolfazl (Kouros) Mohammadian, 2015. "Behavioral Housing Search Choice Set Formation," International Regional Science Review, , vol. 38(2), pages 151-170, April.
    • Handle: RePEc:sae:inrsre:v:38:y:2015:i:2:p:151-170
    DOI: 10.1177/0160017612461356
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    References listed on IDEAS

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    1. Taha Rashidi & Abolfazl Mohammadian & Frank Koppelman, 2011. "Modeling interdependencies between vehicle transaction, residential relocation and job change," Transportation, Springer, vol. 38(6), pages 909-932, November.
    2. Adrian Esparza & Andrew J. Krmenec, 1996. "The Spatial Extent of Producer Service Markets: Hierarchical Models of Interaction Revisited," Papers in Regional Science, Wiley Blackwell, vol. 75(3), pages 375-395, July.
    3. Rashidi, Taha Hossein & Auld, Joshua & Mohammadian, Abolfazl (Kouros), 2012. "A behavioral housing search model: Two-stage hazard-based and multinomial logit approach to choice-set formation and location selection," Transportation Research Part A: Policy and Practice, Elsevier, vol. 46(7), pages 1097-1107.
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    7. Lancaster, Tony, 1979. "Econometric Methods for the Duration of Unemployment," Econometrica, Econometric Society, vol. 47(4), pages 939-956, July.
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    Cited by:

    1. McClain, Verena & Waldorf, Brigitte, 2017. "Borrowing From The Demographer's Toolbox: Longitudinal Methods in Regional Science," Working papers 264970, Purdue University, Department of Agricultural Economics.

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