A semi-compensatory residential choice model with flexible error structure

Sigal Kaplan, Yoram Shiftan, Shlomo Bekhor

Research output: Chapter in Book/Report/Conference proceedingArticle in proceedingsResearchpeer-review

Abstract

This paper presents the development and estimation of a semi-compensatory residential choice model with a flexible error structure. The model assumes that apartment seekers engage in a two-stage process, consisting of a non-compensatory strategy to retain only alternatives that meet search-criteria thresholds, followed by a compensatory strategy to finalize the choice. The model can accommodate nested substitution patterns across the alternatives as well as random taste variation across the population. The proposed model is applied to off-campus rental apartment choices by university students. The model estimation is based on database search and choice outcomes retrieved from a synthetic real-estate website inspired by actual on-line real-estate portals. Results show the potential of the proposed semi-compensatory model to realistically represent residential choice and other spatial choices related to regional, urban and transport planning.
Keyword: residential choice, semi-compensatory, two-stage model, real-estate websites
Original languageEnglish
Title of host publicationThe50th Anniversary European Congress of the Regional Science Association International
Publication date2010
Publication statusPublished - 2010
Externally publishedYes
Event50th Anniversary European Congress of the Regional Science Association International: Sustainable Regional Growth and Development in the Creative Knowledge Economy - Jönköping, Sweden
Duration: 19 Aug 201023 Aug 2010
Conference number: 50
http://www.ersa.org/summer-school/past-congresses/ersa-2010/2010-ersa-congress-jonkoping/

Conference

Conference50th Anniversary European Congress of the Regional Science Association International
Number50
CountrySweden
CityJönköping
Period19/08/201023/08/2010
Internet address

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