Results 1  10
of
158
Accounting for Heterogeneity in the Variance of Unobserved Effects
 in Mixed Logit Models.” Transportation Research B, (2005): In
"... ABSTRACT: The growing popularity of mixed logit to obtain estimates of willingness to pay (WTP) has focussed on the distribution of the random parameters and the possibility of estimating deep parameters to account for heterogeneity around the mean of the distribution. However the possibility exists ..."
Abstract

Cited by 33 (6 self)
 Add to MetaCart
(Show Context)
ABSTRACT: The growing popularity of mixed logit to obtain estimates of willingness to pay (WTP) has focussed on the distribution of the random parameters and the possibility of estimating deep parameters to account for heterogeneity around the mean of the distribution. However the possibility exists to add further behavioural information associated with the variance of the random parameter distribution, through parameterisation of its heterogeneity (or heteroskedasticity). In this paper we extend the mixed logit model to account for this heterogeneity and illustrate the implications this has on the moments of the willingness to pay for travel time savings in the context of commuter choice of mode. The empirical study highlights the statistical and behavioural gains but warns of the potential downside of exposing the distribution of the parameterised numerator and/or denominator of the more complex WTP function to a sign change and extreme values over the range of the distribution. KEY WORDS: Mixed logit, willingness to pay, stated choice methods, heterogeneity.
Extending the bounds of rationality: Evidence and theories of preferential choice
 Journal of Economic Literature
, 2006
"... Most economists define rationality in terms of consistency principles. These principles place “bounds ” on rationality—bounds that range from perfect consistency to weak stochastic transitivity. Several decades of research on preferential choice has demonstrated how and when people violate these bou ..."
Abstract

Cited by 30 (3 self)
 Add to MetaCart
(Show Context)
Most economists define rationality in terms of consistency principles. These principles place “bounds ” on rationality—bounds that range from perfect consistency to weak stochastic transitivity. Several decades of research on preferential choice has demonstrated how and when people violate these bounds. Many of these violations are interconnected and reflect systematic behavioral principles. We discuss the robustness of the violations and review the theories that are able to predict them. We further discuss the adaptive functions of the violations. From this perspective, choices do more than reveal preferences; they also reflect subtle, yet often quite reasonable, dependencies on the environment. 1.
Asymmetrical Preference Formation in Willingness to Pay Estimates
 in Discrete Choice Models, Transportation Research Part E, Logistics and Transportation Review
, 2008
"... ABSTRACT: Individuals when faced with choices amongst a number of alternatives often adopt a variety of processing rules, ranging from simple linear to complex nonlinear treatment of each attribute defining the offer of each alternative. In recent years, there has been a growing interest in the cho ..."
Abstract

Cited by 23 (13 self)
 Add to MetaCart
(Show Context)
ABSTRACT: Individuals when faced with choices amongst a number of alternatives often adopt a variety of processing rules, ranging from simple linear to complex nonlinear treatment of each attribute defining the offer of each alternative. In recent years, there has been a growing interest in the choice process as a basis of understanding how best to represent attributes in choice outcome models. In this paper, in the context of choice amongst tolled and nontolled routes, we investigate the presence of asymmetry in preferences, drawing on ideas from prospect theory to test for framing effects and differential willingness to pay according to whether we are valuing gains or losses. The findings offer clear evidence of an asymmetrical response to increases and decreases in attributes when compared to the corresponding values for a reference alternative. The degree of asymmetry varies across attributes and population segments, but crucially is independent of the inclusion or otherwise of an additional constant for the reference alternative, contrary to earlier findings. KEY WORDS: Preference asymmetry, valuation of travel time savings,
EM Algorithms for Nonparametric Estimation of Mixing Distributions
 Journal of Choice Modeling
, 2008
"... StandardNutzungsbedingungen: Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden. Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, ..."
Abstract

Cited by 22 (1 self)
 Add to MetaCart
(Show Context)
StandardNutzungsbedingungen: Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden. Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen. Sofern die Verfasser die Dokumente unter OpenContentLizenzen (insbesondere CCLizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Abstract This paper describes and implements three computationally attractive procedures for nonparametric estimation of mixing distributions in discrete choice models. The procedures are specific types of the well known EM (ExpectationMaximization) algorithm based on three different ways of approximating the mixing distribution nonparametrically: (1) a discrete distribution with mass points and frequencies treated as parameters, (2) a discrete mixture of continuous distributions, with the moments and weight for each distribution treated as parameters, and (3) a discrete distribution with fixed mass points whose frequencies are treated as parameters. The methods are illustrated with a mixed logit model of households' choices among alternativefueled vehicles. Terms of use: Documents in EconStor may
Estimation on StatedPreference Experiments Constructed from Revealed Preference Choices.‖ Transportation Research Part B, forthcoming
, 2011
"... Transportation researchers have recently introduced a statedpreference (sp) method in which the attributes of the sp alternatives are based on the choice that the respondent made in a realworld setting. This practice can enhance the realism of the sp task and the efficacy of preference revelation. ..."
Abstract

Cited by 21 (0 self)
 Add to MetaCart
Transportation researchers have recently introduced a statedpreference (sp) method in which the attributes of the sp alternatives are based on the choice that the respondent made in a realworld setting. This practice can enhance the realism of the sp task and the efficacy of preference revelation. However, the practice creates dependence between the sp attributes and unobserved factors, contrary to the independence assumption that is maintained for standard estimation procedures. We describe a general estimation method that accounts for this nonindependence and give specific examples based on standard and mixed logit specifications of utility. We show conditions under which standard estimation methods are consistent despite the nonindependence. We illustrate the general methodology through an application to shippers’ choice of route and mode along the Columbia/Snake River system. We benefited greatly from comments and suggestions by Eric Bradlow, Paul Burke,
A Nonparametric Approach to Modeling Choice with Limited Data
 SUBMITTED TO MANAGEMENT SCIENCE MANSCRIPT
"... A central push in operations models over the last decade has been the incorporation of models of customer choice. Real world implementations of many of these models face the formidable stumbling block of simply identifying the ‘right’ model of choice to use. Thus motivated, we visit the following pr ..."
Abstract

Cited by 19 (3 self)
 Add to MetaCart
A central push in operations models over the last decade has been the incorporation of models of customer choice. Real world implementations of many of these models face the formidable stumbling block of simply identifying the ‘right’ model of choice to use. Thus motivated, we visit the following problem: For a ‘generic’ model of consumer choice (namely, distributions over preference lists) and a limited amount of data on how consumers actually make decisions (such as marginal information about these distributions), how may one predict revenues from offering a particular assortment of choices? We present a framework to answer such questions and design a number of tractable algorithms from a data and computational standpoint for the same. This paper thus takes a significant step towards ‘automating’ the crucial task of choice model selection in the context of operational decision problems.
Allowing for intrarespondent variations in coefficients estimated on repeated choice data
 Transportation Research Part B
"... on repeated choice data ..."
(Show Context)
Econometric Choice Formulations: Alternative Model Structures, Estimation Techniques, and Emerging Directions
 ECONOMETRIC MODELS OF CHOICE: FORMULATION AND ESTIMATION
, 2003
"... The last six years since the Austin IATBR conference has been a very fertile period for the germination of new conceptual, theoretical, and computational developments in the field of econometric choice models. There is a sense today of absolute control over the kind of choice behavior structures one ..."
Abstract

Cited by 16 (5 self)
 Add to MetaCart
The last six years since the Austin IATBR conference has been a very fertile period for the germination of new conceptual, theoretical, and computational developments in the field of econometric choice models. There is a sense today of absolute control over the kind of choice behavior structures one wants to specify in empirical contexts and a renewed excitement in the field. This paper reviews these recent developments and assembles a list of recent applications of advanced discrete choice models.
Identifying the Influence of Stated Choice Design Dimensionality on Willingness to Pay for Travel Time Savings Hensher
 Journal of Econometrics
, 1999
"... ABSTRACT: This paper explores the influence of the dimensions of stated choice (SC) designs on the value of travel time savings. Utilising principles of experimental design, 16 choice designs are embedded within a global design in which we vary the number of choice sets, the number of alternatives i ..."
Abstract

Cited by 13 (0 self)
 Add to MetaCart
(Show Context)
ABSTRACT: This paper explores the influence of the dimensions of stated choice (SC) designs on the value of travel time savings. Utilising principles of experimental design, 16 choice designs are embedded within a global design in which we vary the number of choice sets, the number of alternatives in each choice set, the number of attributes per alternative, the number of levels of each attribute and the range of attribute levels. A mixed logit model is estimated in which design dimensions are interacted with the attribute parameters to explore the influence of these dimensions on willingness to pay (WTP) for travel time savings. The evidence in the context of a sample of respondents in Sydney choosing amongst trip attribute bundles for their car commuting trip suggests that design dimensionality does influence variations in WTP; with higher overall mean values of travel time savings associated with more complex designs (in terms of the number of items to process).