Analysis of Discrete Choice Data with Repeated Observations: Comparison of Three Techniques in Intercity Travel Case

Author(s):  
Shomik Raj Mehndiratta ◽  
Mark Hansen

With the acceptance and widespread application of stated preference methods in transportation analysis, there has been a need for the analysis of choice data with repeated observations. Analysis of repeated choice data is complicated by correlation of responses across the choices made by a single individual. In the probit framework, repeated choice can easily be accommodated by way of correlation in the utilities associated with the errors. However, the probit framework has computational limitations; subsequently, researchers have looked to modeling repeated choice by using extensions of the logit model. Random parameter logit models estimated by simulation methods provide a promising modeling framework. The estimation results of some stated preference intercity business travel data are compared by using three alternative estimation techniques to account for correlations across the choices made by a single individual. It is believed that two of the alternative methods, which use random-parameter logit models (developed by researchers for use in an energy application), have not been used before in the transportation context. A comparison of the three techniques provides documentation for researchers and practitioners who plan to analyze such data.

2020 ◽  
Vol 52 (4) ◽  
pp. 527-544
Author(s):  
Meagan Osburn ◽  
Rodney B. Holcomb ◽  
Clinton L. Neill

AbstractState marketing programs for food and agricultural products are largely driven by consumers’ desires to purchase in-state products. Evaluations of state marketing programs have largely ignored consumer location and proximity to surrounding states, measures of ethnocentrism, and the presence of other geographic marketing labels. This study examines willingness to pay for own and out-of-state labels for a generic commodity, milk, within an eight-state region. The results show that an aggregate model conceals consumer heterogeneity in marginal willingness to pay values for state brands as compared to a disaggregate model, even when using random parameter logit models.


2005 ◽  
Vol 37 (3) ◽  
pp. 525-550 ◽  
Author(s):  
Mauricio Sillano ◽  
Juan de Dios Ortúzar

Mixed-logit models are currently the state of the art in discrete-choice modelling, and their estimation in various forms (in particular, mixing revealed-preference and stated-preference data) is becoming increasingly popular. Although the theory behind these models is fairly simple, the practical problems associated with their estimation with empirical data are still relatively unknown and certainly not solved to everybody's satisfaction. In this paper we use a stated-preference dataset—previously used to derive willingness to pay for reduction in atmospheric pollution and subjective values of time—to estimate random parameter mixed logit models with different estimation methods. We use our results to discuss in some depth the problems associated with the derivation of willingness to pay with this class of models.


2021 ◽  
Vol 13 (6) ◽  
pp. 3035
Author(s):  
Mallikarjun Patil ◽  
Bandhan Bandhu Majumdar ◽  
Prasanta Kumar Sahu ◽  
Long T. Truong

Electric two-wheelers (E2W) can help de-carbonize transport in Indian cities. To promote E2W as an attractive alternative compared to the conventional two-wheelers, an investigation on prospective users’ choice decisions is necessary. This paper proposed a comprehensive methodology to evaluate the prospective users’ choice decision toward electric two-wheelers and related attributes in the Indian context. In this paper, attributes such as Operating Cost (OC) savings, top speed, range, charging duration, acceleration, and purchase cost were considered to design a Stated Preference (SP) survey to collect data from prospective E2W users in Hyderabad, India. Concurrently, multinomial logit (MNL) and random parameter logit (RPL) models are developed, and the willingness-to-pay (WTP) associated with each of the identified attributes was estimated. Additionally, the effect of socio-economic characteristics on prospective users’ choice decision was also assessed. Subsequently, a sensitivity analysis was carried out to estimate the relative influence of the attributes on an individual’s choice decision in terms of the shift in probability to choose alternatives with better attribute levels than the base alternative. The results revealed that top speed was perceived as the most important attribute influencing an individual’s choice decision, followed by acceleration and charging duration. Age, income, and journey time significantly influenced an individual’s perception toward E2W and related attributes in the Indian context.


2019 ◽  
Vol 75 (5) ◽  
pp. 779-792
Author(s):  
Fiona Jane Francis ◽  
Azman Hassan ◽  
Syamsul Herman Mohd Afandi ◽  
Alias Radam

Purpose This study aims to incorporate visitors’ preferences for sustainable development into the policy framework of Rainforest Discovery Centre (RDC), Sabah, Malaysia. Design/methodology/approach A stated preference technique known as choice experiment (CE) method is used in this study. Four management attributes, namely, information provision (IP), protection level (PL), guided tour (GT) and entrance fee (FEE), were identified as the most relevant aspects of the RDC in Sabah. Two econometrics models which are conditional logit and random parameter logit were estimated to achieve the purpose of the study. Findings This study finds that visitors support the proposed development of RDC. The alteration of protection level (i.e. improvement of “PL” attribute) is the most concerning matter among visitors. Since the random parameter logit model revealed that PL is specified as random, the individual heterogeneity exists for PL. Practical implications The current issues in ecotourism were studied and integrated into the methodology. A unique and comprehensive policy structure was developed, and enables to respond with any contemporary issues linked to protected areas (PA) without neglecting the natural and cultural endowments. Originality/value This study presents an in-depth understanding of visitors’ preferences in the ecotourism industry and used CE as a mechanism tool to explore visitors’ preferences. This study incorporates the conceptualisation of visitors’ preferences and sustainable tourism development into the PA framework structure.


Horticulturae ◽  
2021 ◽  
Vol 7 (7) ◽  
pp. 179
Author(s):  
Alice Stiletto ◽  
Erika Rozzanigo ◽  
Elisa Giampietri ◽  
Samuele Trestini

This study investigates the preferences for ready-to-eat pomegranate arils in Italy through a discrete choice experiment (DCE) on 264 young consumers in Italy. The aim is to estimate consumers’ willingness to pay (WTP) for the reputational attributes of the product (e.g., the product origin and sales channel) and to discriminate the elicited preferences between tasting and non-tasting situations. To this purpose, a random parameter logit model was employed to assess the heterogeneity in consumer preferences. The results suggest that non-tasters attach a relevant value to the reputational attributes (e.g., +75% WTP for Italian origin). Moreover, considering the sensory features of the products, we found that consumers in this group discriminate against the proposed samples only through their visual characteristics: they prefer the sample with the largest size and red colored arils. In addition, we found that the tasting experience reduced the value attached to the reputational attributes (e.g., −50% WTP for local origin) for consumers, compared to non-tasting situation, thus shifting their preference to the samples that they appreciated the most (high liking). Specifically, we found that consumers in the tasting group preferred the product sample with the highest level of sweetness and the lowest level of sourness and astringency, showing a higher preference for sweetness. The findings contribute to the literature on consumers’ behavior on new food products (NFPs), showing that reputational attributes lose value after the tasting experience. In contrast, the sensory features of the NFPs can help tasters to reduce the information asymmetry, which traditionally represents a hurdle in purchases for new consumers. However, this depends on the individuals’ subjective preferences, as demonstrated by the significant effect of liking levels in discriminating consumers’ choices. To conclude, although these results cannot be extended to the general population, they may give some interesting insights about future trends of NFP demand.


2021 ◽  
Vol 13 (12) ◽  
pp. 6816
Author(s):  
Gaofeng Gu ◽  
Tao Feng ◽  
Chixing Zhong ◽  
Xiaoxi Cai ◽  
Jiang Li

Life course events can change household travel demand dramatically. Recent studies of car ownership have examined the impacts of life course events on the purchasing, replacing, and disposing of cars. However, with the increasing diversification of mobility tools, changing the fleet size is not the only option to adapt to the change caused by life course events. People have various options with the development of sustainable mobility tools including electric car, electric bike, and car sharing. In order to determine the impacts of life course events on car ownership and the decision of mobility tool type, a stated choice experiment was conducted. The experiment also investigated how the attributes of mobility tools related to the acceptance of them. Based on existing literature, we identified the attributes of mobility tools and several life course events which are considered to be influential in car ownership decision and new types of mobility tools choice. The error component random parameter logit model was estimated. The heterogeneity across people on current car and specific mobility tools are considered. The results indicate people incline not to sell their current car when they choose an electric bike or shared car. Regarding the life course events, baby birth increases the probability to purchase an additional car, while it decreases the probability to purchase an electric bike or joining a car sharing scheme. Moreover, the estimation of error components implies that there is unobserved heterogeneity across respondents on the sustainable mobility tools choice and the decision on household’s current car.


2020 ◽  
Vol 15 (2) ◽  
pp. 140-156
Author(s):  
Riad Sultan ◽  

The study provides evidence for how risk preferences determine fishing location choices by artisanal fishers on the south-west coast of the island of Mauritius. Risk preference is modelled using a random linear utility framework defined over mean-standard deviation space. The study estimates expected revenue and revenue risk from the Just and Pope production function and applies the random parameter logit model to account for fisher-specific and location-specific characteristics. The findings are consistent with utility-maximising fishers, whereby the likelihood to choose a fishing location is positively associated with expected revenue and negatively related to revenue risk. Distance from fishing station to fishing grounds affects the choice of fishing location negatively. The estimated model allows heterogeneity in risk preferences and concludes that 51% of fishers can be classified as risk averse, 31% as risk seekers and the remaining as risk neutral. The study also estimates the degree of substitutability and complementarity between fishing locations based on the risk preferences of fishers and discusses the relevance of this for fisheries management policy.


2011 ◽  
Vol 8 (1) ◽  
pp. 103 ◽  
Author(s):  
Sergio Colombo ◽  
Nick Hanley

The need to account for respondents’ preference heterogeneity in stated choice models has motivated researchers to apply random parameter logit and latent class models. In this paper we compare these three alternative ways of incorporating preference heterogeneity in stated choice models and evaluate how the choice of model affects welfare estimates in a given empirical application. Finally, we discuss what criteria to follow to decide which approach is most appropriate.


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