Abstract
This paper considers a multiactor decision process, where each actor chooses a sequence of actions over time, in order to maximize his utility, subject to a random noise in the utility evaluation. The pool of alternative actions is limited, and all actors compete to use these alternatives, thus generating mutual externalities due to shortages. This process, which has a direct formulation in terms of a nested random utility model, is shown to be equivalent to a suitably built optimal control problem, whose Hamiltonian can be interpreted as a total benefit. A continuous time formulation is outlined, and an application to modelling residential mobility is discussed.
Keywords
- Optimal Control Problem
- Residential Mobility
- Random Utility
- Choice Process
- Pontryagin Maximum Principle
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.
This is a preview of subscription content, log in via an institution.
Buying options
Tax calculation will be finalised at checkout
Purchases are for personal use only
Learn about institutional subscriptionsPreview
Unable to display preview. Download preview PDF.
References
Block, H. and J. Marschak, 1960, Random Orderings and Stochastic Theories of Responses, in Contributions to Probability and Statistics, edited by I. Olkin, et al., Stanford: Stanford University Press, pp. 97132.
Chang, S., 1961, Synthesis of Optimal Control Systems, New York: McGraw—Hill.
De Palma, A. and M. Ben-Akiva, 1981, An Interactive Dynamic Model of Residential Location Choice, paper presented at the International Conference on Structural Economic Analysis and Planning in Time and Space, Umea, Sweden, June 21–26, 1981.
Fan, L. and C. Wang, 1964, The Discrete Maximum Principle, New York: Wiley.
Hadley, G. and M. Kemp, 1971, Variational Methods in Economics, Amsterdam: North-Holland.
Leonardi, G., 1982, An Extreme Value Approach to Random Utility Search and Choice Models, paper presented at the Course on Transportation Planning Models, International Center for Transportation Studies, Amalfi, Italy, October, 1982.
Leonardi, G., and M. Campisi, 1981, Dynamic Multistage Random Utility Choice Processes: Models in Discrete and Continuous Time, paper presented at the 2nd meeting of the Regional Science Association, Italian Section, Naples, October 19=21, 1981.
Luce, R., 1959, Individual Choice Behavior: A Theoretical Analysis, New York: Wiley.
McFadden, D., 1973, Conditional Logit Analysis of Qualitative Choice Behavior, in Frontiers in Econometrics, edited by P. Zarembka, New York: Academic Press, pp. 105142.
McFadden, D., 1978, Modelling the Choice of Residential Location, in Spatial Interaction Theory and Planning Models, edited by A. Karlqvist et al., Amsterdam: North—Holland, pp. 7596.
Sengupta, J. and K. Fox, 1969, Optimization Techniques in Quantitative Economic Models, Amsterdam: North—Holland.
Author information
Authors and Affiliations
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 1983 Martinus Nijhoff Publishers, The Hague
About this chapter
Cite this chapter
Leonardi, G. (1983). An Optimal Control Representation of a Stochastic Multistage-Multiactor Choice Process. In: Griffith, D.A., Lea, A.C. (eds) Evolving Geographical Structures. NATO ASI Series, vol 15. Springer, Dordrecht. https://doi.org/10.1007/978-94-009-6893-6_4
Download citation
DOI: https://doi.org/10.1007/978-94-009-6893-6_4
Publisher Name: Springer, Dordrecht
Print ISBN: 978-94-009-6895-0
Online ISBN: 978-94-009-6893-6
eBook Packages: Springer Book Archive