Development and estimation of a semi-compensatory model with flexible error structure

Sigal Kaplan (Invited author), Yoram Shiftan (Invited author), Shlomo Bekhor (Invited author)

    Research output: Contribution to conferencePaperResearch


    Semi-compensatory models show promise in representing two-stage choice processes by integrating choice set formation within discrete choice models. However, they are subject to simplifying assumptions that limit their application. The current study proposes a novel semi-compensatory model that alleviates these simplifying assumptions concerning (i) the number of alternatives, (ii) the representation of choice set formation, and (iii) the error structure. The proposed semi-compensatory model represents a sequence of choice set formation based on the conjunctive heuristic with correlated thresholds, and utility-based choice accommodating alternatively nested substitution patterns across the alternatives and random taste variation across the population. The proposed model is applied to off-campus rental apartment choice of students. Results show (i) the estimated model for a universal realm of 200 alternatives and 41 choice sets, (ii) the threshold representation as a function of individual characteristics, and (iii) the feasibility and importance of introducing a flexible error structure into semi-compensatory models.
    Original languageEnglish
    Publication date2009
    Publication statusPublished - 2009
    EventAdvances in Transportation Modeling Workshop - Haifa, Israel
    Duration: 1 Jan 2009 → …
    Conference number: 1


    ConferenceAdvances in Transportation Modeling Workshop
    CityHaifa, Israel
    Period01/01/2009 → …


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