A two-stage model jointly revealing the determinants of non-compensatory conjunctive choice set formation and compensatory choice

Sigal Kaplan, Shlomo Bekhor, Yoram Shiftan

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

Abstract

Understanding the distribution and determinants of search-criteria thresholds helps in representing choice set formation and choice behavior. This paper presents the development and estimation of a two-stage model that jointly represents search-criteria thresholds, within a non-compensatory choice set formation stage, and choice behavior, within a compensatory stage. Data were collected by means of a custom designed web-based choice experiment that seamlessly tracks the entire choice process by recording choice protocols.The model is applied to off-campus rental apartment choice by students, as an example of a complex choice situation. The model combines three correlated ordered-response models for the search criteria with a multinomial logit model for the choice among a realistically large realm of 200 alternatives. Estimates demonstrate that: i) the thresholds are correlated and their selection can be explained by individual characteristics, preferences and perceptions; and ii) the suggested methodology alleviates the computational complexity embedded in two-stage models by reducing the number of theoretically possible choice sets to the actually chosen ones.
Original languageEnglish
Title of host publicationThe 88th Annual Meeting of the Transportation Research Board
PublisherTransportation Research Board
Publication date2009
Publication statusPublished - 2009
Externally publishedYes
Event88th Annual Meeting of the Transportation Research Board - Washington DC, United States
Duration: 11 Jan 200915 Jan 2009
Conference number: 88
http://pubsindex.trb.org/view.aspx?id=880359

Conference

Conference88th Annual Meeting of the Transportation Research Board
Number88
CountryUnited States
CityWashington DC
Period11/01/200915/01/2009
Internet address

Cite this

Kaplan, S., Bekhor, S., & Shiftan, Y. (2009). A two-stage model jointly revealing the determinants of non-compensatory conjunctive choice set formation and compensatory choice. In The 88th Annual Meeting of the Transportation Research Board Transportation Research Board.