Development and estimation of flexible semi-compensatory choice models: An application to residential choice

Sigal Kaplan

Research output: Book/ReportCompendium/lecture notes

Abstract

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 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 model is accompanied by an innovative two-stage procedure to collect data about semi-compensatory choice processes in a digital economy environment. The proposed model is applied to off-campus rental apartment choice of students in a university city in the core of medium-size metropolitan area.
Original languageEnglish
PublisherLAP Lambert Academic Publishing
Number of pages252
ISBN (Print)978-3-8383-9173-1
Publication statusPublished - 2010
Externally publishedYes

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