Since their inception in the 1970s (McFadden 1974), Discrete Choice Models (DCMs from here on) have been used to explain choice-behavior of individuals and predict market shares for products and services in a wide variety of contexts. Numerous studies worldwide have been performed over the years to provide quantitative analyses and forecasts of choice behavior and market shares in fields as diverse as transportation, health care, consumer choice, and environmental economics—to name a few. DCMs use observed choices between different options (for example: stated or revealed choices between different travel modes on a given route) to derive the underlying preferences of individuals. When one has information about the characteristics of the different choice options—such as the travel times and costs of the different travel modes—DCMs make it possible to estimate the weights that decision-makers attach to these different characteristics when making decisions. Knowing these weights is...
KeywordsMarket Share Discrete Choice Modeling Travel Mode Regret Minimization Random Regret Minimization
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