Modelling Hierarchical Destination Choice

1986 ◽  
Vol 18 (3) ◽  
pp. 401-418 ◽  
Author(s):  
A S Fotheringham
Keyword(s):  
Gravity Model ◽  
Discrete Choice ◽  
Choice Theory ◽  
Model Misspecification ◽  
Choice Models ◽  
Destination Choice ◽  
Theoretical Derivation ◽  
Choice Process ◽  
Selection Of

The production-constrained gravity formulation is shown to be an especially inaccurate specification of reality whenever the selection of destinations by individuals results from a hierarchical choice process. Hierarchical decisionmaking violates the Independence from Irrelevant Alternatives property embedded in the theoretical derivation of the production-constrained gravity model from choice axioms. Various aspects of gravity model misspecification resulting from hierarchical destination choice are investigated and an empirical example is given in terms of US migrants. A discussion is presented of several destination choice models that are more accurately specified than the gravity formulation when destination choice is hierarchical. The recently derived competing destinations formulation is shown to be amongst the most useful in this respect. The discussion is framed in the context of discrete choice theory.

Modeling Store Choices with Cross-Sectional and Pooled Cross-Sectional Data: A Comparison

1995 ◽  
Vol 27 (8) ◽  
pp. 1303-1315 ◽  
Author(s):  
J-C Thill
Keyword(s):  
Market Share ◽  
Discrete Choice ◽  
Marginal Utility ◽  
Choice Model ◽  
Practical Implication ◽  
Choice Models ◽  
Discrete Choice Models ◽  
Destination Choice ◽  
Cross Sectional ◽  
Data Set

Contrary to many other types of spatial decisions, shopping destination choice behavior is highly repetitive. For the practitioner looking for good predictors of store patronage, for reliable marginal utility estimates and reliable market share predictions, a central concern is with the type of data best suited to the research question, given the existing logistic and financial constraints. Different approaches can be recognized in the literature in which conventional discrete choice models are applied to shopping destination choice problems. In this paper, two of the most common practices are assessed and compared. First, the choice model is estimated with all choices of a relevant destination observed during a certain period of time (pooled cross-sectional data). The alternative approach consists in an estimation with the choice of the destination where the majority of purchases takes place (cross-sectional data). In the particular data set employed here, no evidence is found to support the idea that a multinomial logit model estimated with cross-sectional data does not perform as well as a model estimated with pooled cross-sectional data. Both models are found to be similar in their ability to identity the main predictors of store choice. Models developed on either data sets have marginal utility estimates that exhibit no statistically significant differences. Finally, market share predictions derived from both models are not statistically different. It appears, therefore, that there is no need to collect repeated patronage data over an extended period of time. The practitioner who wishes to use a conventional discrete choice model may avoid spending much time and money by gathering limited data on regular patronage patterns. In addition to this practical implication, the conclusions suggest that regular shopping destinations are chosen in accordance with the same behavioral motives as ancillary destinations are.

Discrete Choice Theory and Modeling

2011 ◽  
pp. 118-151 ◽  
Author(s):  
W. L. Adamowicz ◽  
Joffre D. Swait
Keyword(s):  
Discrete Choice ◽  
Choice Theory ◽  
Food Choices ◽  
Choice Models ◽  
Discrete Choice Models ◽  
Demand Analysis ◽  
Food Demand ◽  
Future Research ◽  
Research Issues ◽  
Discrete Choice Demand

This article provides an overview of the methods employed in discrete choice models relevant to food demand analysis. Discrete analysis of food choices can be grouped into two main areas: analysis that focuses on the consumer to assess preferences and welfare, and analysis that focuses on assessing consumer behavior to provide marketing or sales strategies. This article illustrates that discrete choice models of food demand have been estimated from a variety of data sources: choice experiments, experimental economic data, and scanner panel data. It examines the conceptual framework underpinning these discrete choices. It reflects on the relatively unique properties of disaggregate food choices and the corresponding issues for discrete choice demand analysis. This article considers the operationalization of models based on the theoretical microeconomic model. Finally, it provides a brief description of some interesting extensions and future research issues in the area of discrete choice analysis and food demand.

Theoretical, methodological and practical issues of choice models

2018 ◽  
Vol 1 (1) ◽  
pp. 21-37
Author(s):  
Bharat P. Bhatta
Keyword(s):  
Discrete Choice ◽  
Model Building ◽  
Estimation Method ◽  
Choice Models ◽  
Discrete Choice Models ◽  
Decision Makers ◽  
Model Formulation ◽  
Random Utility Maximization ◽  
The Relationship ◽  
Method Model

This paper analyzes and synthesizes the fundamentals of discrete choice models. This paper alsodiscusses the basic concept and theory underlying the econometrics of discrete choice, specific choicemodels, estimation method, model building and tests, and applications of discrete choice models. Thiswork highlights the relationship between economic theory and discrete choice models: how economictheory contributes to choice modeling and vice versa. Keywords: Discrete choice models; Random utility maximization; Decision makers; Utility function;Model formulation

Precursors to Public Choice

2019 ◽  
pp. 796-816
Author(s):  
Iain McLean
Keyword(s):  
Public Choice ◽  
Social Choice ◽  
Choice Theory ◽  
Social Choice Theory ◽  
Ancient Greek ◽  
The Social ◽  
Mathematical Skill ◽  
The Many ◽  
Selection Of

This chapter reviews the many appearances, disappearances, and reappearances of axiomatic thought about social choice and elections since the era of ancient Greek democracy. Social choice is linked to the wider public-choice movement because both are theories of agency. Thus, just as the first public-choice theorists include Hobbes, Hume, and Madison, so the first social-choice theorists include Pliny, Llull, and Cusanus. The social-choice theory of agency appears in many strands. The most important of these are binary vs. nonbinary choice; aggregation of judgement vs. aggregation of opinion; and selection of one person vs. selection of many people. The development of social choice required both a public-choice mindset and mathematical skill.

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