An empirical comparison of travel choice models that capture preferences for compromise alternatives
- 738 Downloads
Compromise alternatives have an intermediate performance on each or most attributes rather than having a poor performance on some attributes and a strong performance on others. The relative popularity of compromise alternatives among decision-makers has been convincingly established in a wide range of decision contexts, while being largely ignored in travel behavior research. We discuss three (travel) choice models that capture a potential preference for compromise alternatives. One approach, which is introduced in this paper, involves the construction of a so-called compromise variable which indicates to what extent (i.e., on how many attributes) a given alternative is a compromise alternative in its choice set. Another approach consists of the recently introduced random regret-model form, where the popularity of compromise alternatives emerges endogenously from the regret minimization-based decision rule. A third approach consists of the contextual concavity model, which is known for favoring compromise alternatives by means of a locally concave utility function. Estimation results on a stated route choice dataset show that, in terms of model fit and predictive ability, the contextual concavity and random regret models appear to perform better than the model that contains an added compromise variable.
KeywordsCompromise alternatives Route-choices Random regret Contextual concavity
Support from The Netherlands Organization for Scientific Research (NWO), in the form of VENI-grant 451.10.001, is gratefully acknowledged by the first author. Comments made by four anonymous reviewers have helped us improve a previous version of this paper.
- Bierlaire, M., 2003. BIOGEME: A free package for the estimation of discrete choice models.in: Proceedings of the 3rd Swiss Transportation Research Conference, Ascona, SwitzerlandGoogle Scholar
- Bierlaire, M.:An introduction to BIOGEME Version 1.7, biogeme.epfl.ch (2008)Google Scholar
- ChoiceMetrics, :Ngene 1.0 user manual and reference guide Sydney, Australia (2009)Google Scholar
- Chorus, C.G.: A new model of random regret minimization. Eur. J. Transp. Infrastructure Res. 10(2), 181–196 (2010)Google Scholar
- Chorus, C.G., Rose, J.M.:Selecting a date: a matter of regret and compromises. In: Hess, S., Daly, A. (eds.) Choice modelling: The state of the art and the state of practice, Chap. 11. Edward Elgar (2011)Google Scholar
- Fonzone, A., Schmöcker, J-D., Ma, J.S., Fukuda, D.:Link based route choice considering risk aversion and regret. Paper presented at the annual meeting of the Transportation Research Board, Washington, DC USA (2012)Google Scholar
- Hensher, D.A., Greene, W., Chorus, C.G., in press. Random regret minimisation or random utility maximisation: an exploratory analysis in the context of automobile fuel choice. J. Adv. Transp.Google Scholar