IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/51637.html
   My bibliography  Save this paper

A Generalized Random Regret Minimization Model

Author

Listed:
  • Chorus, Caspar

Abstract

This paper presents, discusses and tests a generalized Random Regret Minimization (G-RRM) model. The G-RRM model is created by replacing a fixed constant in the attribute-specific regret functions of the RRM model, by a regret-weight variable. Depending on the value of the regret-weights, the G-RRM model generates predictions that equal those of, respectively, the canonical linear-in-parameters Random Utility Maximization (RUM) model, the conventional Random Regret Minimization (RRM) model, and hybrid RUM-RRM specifications. When the regret-weight variable is written as a binary logit function, the G-RRM model can be estimated on choice data using conventional software packages. As an empirical proof of concept, the G-RRM model is estimated on a stated route choice dataset, and its outcomes are compared with RUM and RRM counterparts.

Suggested Citation

  • Chorus, Caspar, 2013. "A Generalized Random Regret Minimization Model," MPRA Paper 51637, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:51637
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/51637/1/MPRA_paper_51637.pdf
    File Function: original version
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    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. Chorus, Caspar G., 2012. "Logsums for utility-maximizers and regret-minimizers, and their relation with desirability and satisfaction," Transportation Research Part A: Policy and Practice, Elsevier, vol. 46(7), pages 1003-1012.
    4. Matthew J. Beck & Caspar G. Chorus & John M. Rose & David A. Hensher, 2013. "Vehicle Purchasing Behaviour of Individuals and Groups: Regret or Reward?," Journal of Transport Economics and Policy, University of Bath, vol. 47(3), pages 475-492, September.
    5. 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.
    6. Stephane Hess & Amanda Stathopoulos & Andrew Daly, 2012. "Allowing for heterogeneous decision rules in discrete choice models: an approach and four case studies," Transportation, Springer, vol. 39(3), pages 565-591, May.
    7. Caspar Chorus & Michel Bierlaire, 2013. "An empirical comparison of travel choice models that capture preferences for compromise alternatives," Transportation, Springer, vol. 40(3), pages 549-562, May.
    8. Menezes, Flavio M., 2008. "An Introduction to Auction Theory," OUP Catalogue, Oxford University Press, number 9780199275991.
    9. Hess, Stephane & Stathopoulos, Amanda, 2013. "A mixed random utility — Random regret model linking the choice of decision rule to latent character traits," Journal of choice modelling, Elsevier, vol. 9(C), pages 27-38.
    10. Boeri, Marco & Scarpa, Riccardo & Chorus, Caspar G., 2014. "Stated choices and benefit estimates in the context of traffic calming schemes: Utility maximization, regret minimization, or both?," Transportation Research Part A: Policy and Practice, Elsevier, vol. 61(C), pages 121-135.
    11. Boeri, Marco & Longo, Alberto & Grisolía, José M. & Hutchinson, W. George & Kee, Frank, 2013. "The role of regret minimisation in lifestyle choices affecting the risk of coronary heart disease," Journal of Health Economics, Elsevier, vol. 32(1), pages 253-260.
    12. Stathopoulos, Amanda & Hess, Stephane, 2012. "Revisiting reference point formation, gains–losses asymmetry and non-linear sensitivities with an emphasis on attribute specific treatment," Transportation Research Part A: Policy and Practice, Elsevier, vol. 46(10), pages 1673-1689.
    13. Caspar G Chorus & John M Rose & David A Hensher, 2013. "Regret Minimization or Utility Maximization: It Depends on the Attribute," Environment and Planning B, , vol. 40(1), pages 154-169, February.
    14. Moshe Ben-Akiva & Joffre Swait, 1986. "The Akaike Likelihood Ratio Index," Transportation Science, INFORMS, vol. 20(2), pages 133-136, May.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Caspar G. Chorus & Sander Cranenburgh, 2018. "Specification of regret-based models of choice behaviour: formal analyses and experimental design based evidence—commentary," Transportation, Springer, vol. 45(1), pages 247-256, January.
    2. S. F. A. Batista & Ludovic Leclercq, 2019. "Regional Dynamic Traffic Assignment Framework for Macroscopic Fundamental Diagram Multi-regions Models," Transportation Science, INFORMS, vol. 53(6), pages 1563-1590, November.
    3. Luan, Siliang & Yang, Qingfang & Jiang, Zhongtai & Wang, Wei, 2021. "Exploring the impact of COVID-19 on individual's travel mode choice in China," Transport Policy, Elsevier, vol. 106(C), pages 271-280.
    4. Sunghoon Jang & Soora Rasouli & Harry Timmermans, 2017. "Incorporating psycho-physical mapping into random regret choice models: model specifications and empirical performance assessments," Transportation, Springer, vol. 44(5), pages 999-1019, September.
    5. John Buckell & Vrinda Vasavada & Sarah Wordsworth & Dean A. Regier & Matthew Quaife, 2022. "Utility maximization versus regret minimization in health choice behavior: Evidence from four datasets," Health Economics, John Wiley & Sons, Ltd., vol. 31(2), pages 363-381, February.
    6. Shi An & Ze Wang & Jianxun Cui, 2015. "Integrating Regret Psychology to Travel Mode Choice for a Transit-Oriented Evacuation Strategy," Sustainability, MDPI, vol. 7(7), pages 1-16, June.
    7. Mai, Tien & Bastin, Fabian & Frejinger, Emma, 2017. "On the similarities between random regret minimization and mother logit: The case of recursive route choice models," Journal of choice modelling, Elsevier, vol. 23(C), pages 21-33.
    8. van Cranenburgh, Sander & Prato, Carlo G., 2016. "On the robustness of random regret minimization modelling outcomes towards omitted attributes," Journal of choice modelling, Elsevier, vol. 18(C), pages 51-70.
    9. Álvaro A. Gutiérrez Vargas & Michel Meulders & Martina Vandebroek, 2020. "randregret: A command for fitting Random Regret Minimization Models," London Stata Conference 2020 13, Stata Users Group.
    10. Huiqian Sun & Peng Jing & Mengxuan Zhao & Yuexia Chen & Fengping Zhan & Yuji Shi, 2020. "Research on the Mode Choice Intention of the Elderly for Autonomous Vehicles Based on the Extended Ecological Model," Sustainability, MDPI, vol. 12(24), pages 1-22, December.
    11. Peng Jing & Mengxuan Zhao & Meiling He & Long Chen, 2018. "Travel Mode and Travel Route Choice Behavior Based on Random Regret Minimization: A Systematic Review," Sustainability, MDPI, vol. 10(4), pages 1-20, April.
    12. van Cranenburgh, Sander & Collins, Andrew T., 2019. "New software tools for creating stated choice experimental designs efficient for regret minimisation and utility maximisation decision rules," Journal of choice modelling, Elsevier, vol. 31(C), pages 104-123.
    13. Tian, Qi & Zhao, Jinhua, 2018. "Regret Minimization in Decision Making: Implications for Choice Modeling and Policy Design," 2018 Annual Meeting, August 5-7, Washington, D.C. 274016, Agricultural and Applied Economics Association.
    14. van Cranenburgh, Sander & Guevara, Cristian Angelo & Chorus, Caspar G., 2015. "New insights on random regret minimization models," Transportation Research Part A: Policy and Practice, Elsevier, vol. 74(C), pages 91-109.
    15. Xingchuan Wang & Enjian Yao & Shasha Liu, 2018. "Travel Choice Analysis under Metro Emergency Context: Utility? Regret? Or Both?," Sustainability, MDPI, vol. 10(11), pages 1-15, October.
    16. Xiangfeng Ji & Xuegang (Jeff) Ban & Mengtian Li & Jian Zhang & Bin Ran, 2017. "Non-expected Route Choice Model under Risk on Stochastic Traffic Networks," Networks and Spatial Economics, Springer, vol. 17(3), pages 777-807, September.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Chorus, Caspar & van Cranenburgh, Sander & Dekker, Thijs, 2014. "Random regret minimization for consumer choice modeling: Assessment of empirical evidence," Journal of Business Research, Elsevier, vol. 67(11), pages 2428-2436.
    2. Sunghoon Jang & Soora Rasouli & Harry Timmermans, 2017. "Incorporating psycho-physical mapping into random regret choice models: model specifications and empirical performance assessments," Transportation, Springer, vol. 44(5), pages 999-1019, September.
    3. van Cranenburgh, Sander & Guevara, Cristian Angelo & Chorus, Caspar G., 2015. "New insights on random regret minimization models," Transportation Research Part A: Policy and Practice, Elsevier, vol. 74(C), pages 91-109.
    4. Caspar G. Chorus, 2014. "Capturing alternative decision rules in travel choice models: a critical discussion," Chapters, in: Stephane Hess & Andrew Daly (ed.), Handbook of Choice Modelling, chapter 13, pages 290-310, Edward Elgar Publishing.
    5. Kim, Jinhee & Rasouli, Soora & Timmermans, Harry, 2017. "Satisfaction and uncertainty in car-sharing decisions: An integration of hybrid choice and random regret-based models," Transportation Research Part A: Policy and Practice, Elsevier, vol. 95(C), pages 13-33.
    6. Boeri, Marco & Longo, Alberto, 2017. "The importance of regret minimization in the choice for renewable energy programmes: Evidence from a discrete choice experiment," Energy Economics, Elsevier, vol. 63(C), pages 253-260.
    7. van Cranenburgh, Sander & Chorus, Caspar G., 2018. "Does the decision rule matter for large-scale transport models?," Transportation Research Part A: Policy and Practice, Elsevier, vol. 114(PB), pages 338-353.
    8. Boeri, Marco & Scarpa, Riccardo & Chorus, Caspar G., 2014. "Stated choices and benefit estimates in the context of traffic calming schemes: Utility maximization, regret minimization, or both?," Transportation Research Part A: Policy and Practice, Elsevier, vol. 61(C), pages 121-135.
    9. Lim, Jooyoung & Hahn, Minhi, 2020. "Regulatory focus and decision rules: Are prevention-focused consumers regret minimizers?," Journal of Business Research, Elsevier, vol. 120(C), pages 343-350.
    10. John Buckell & Vrinda Vasavada & Sarah Wordsworth & Dean A. Regier & Matthew Quaife, 2022. "Utility maximization versus regret minimization in health choice behavior: Evidence from four datasets," Health Economics, John Wiley & Sons, Ltd., vol. 31(2), pages 363-381, February.
    11. Peng Jing & Mengxuan Zhao & Meiling He & Long Chen, 2018. "Travel Mode and Travel Route Choice Behavior Based on Random Regret Minimization: A Systematic Review," Sustainability, MDPI, vol. 10(4), pages 1-20, April.
    12. van Cranenburgh, Sander & Rose, John M. & Chorus, Caspar G., 2018. "On the robustness of efficient experimental designs towards the underlying decision rule," Transportation Research Part A: Policy and Practice, Elsevier, vol. 109(C), pages 50-64.
    13. Chorus, Caspar G., 2012. "Logsums for utility-maximizers and regret-minimizers, and their relation with desirability and satisfaction," Transportation Research Part A: Policy and Practice, Elsevier, vol. 46(7), pages 1003-1012.
    14. Haghani, Milad & Sarvi, Majid, 2018. "Hypothetical bias and decision-rule effect in modelling discrete directional choices," Transportation Research Part A: Policy and Practice, Elsevier, vol. 116(C), pages 361-388.
    15. Hess, Stephane & Stathopoulos, Amanda, 2013. "A mixed random utility — Random regret model linking the choice of decision rule to latent character traits," Journal of choice modelling, Elsevier, vol. 9(C), pages 27-38.
    16. 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.
    17. Gonzalez-Valdes, Felipe & Heydecker, Benjamin G. & Ortúzar, Juan de Dios, 2022. "Quantifying behavioural difference in latent class models to assess empirical identifiability: Analytical development and application to multiple heuristics," Journal of choice modelling, Elsevier, vol. 43(C).
    18. David A. J. Meester & Stephane Hess & John Buckell & Thomas O. Hancock, 2023. "Can decision field theory enhance our understanding of health‐based choices? Evidence from risky health behaviors," Health Economics, John Wiley & Sons, Ltd., vol. 32(8), pages 1710-1732, August.
    19. Haghani, Milad & Sarvi, Majid, 2019. "Laboratory experimentation and simulation of discrete direction choices: Investigating hypothetical bias, decision-rule effect and external validity based on aggregate prediction measures," Transportation Research Part A: Policy and Practice, Elsevier, vol. 130(C), pages 134-157.
    20. Follett, Lendie & Naald, Brian Vander, 2023. "Heterogeneity in choice experiment data: A Bayesian investigation," Journal of choice modelling, Elsevier, vol. 46(C).

    More about this item

    Keywords

    Random Utility Maximization; Random Regret Minimization; Choice model; Unified approach; Generalized Random Regret Minimization;
    All these keywords.

    JEL classification:

    • C5 - Mathematical and Quantitative Methods - - Econometric Modeling
    • M30 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - General
    • R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Transportation: Demand, Supply, and Congestion; Travel Time; Safety and Accidents; Transportation Noise

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:51637. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.html .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.