Hybrid Compensatory–Noncompensatory Choice Sets in Semicompensatory Models
Abstract
Semicompensatory models represent a choice process consisting of an elimination-based choice set formation on satisfaction of criterion thresholds and a utility-based choice. Current semicompensatory models assume a purely noncompensatory choice set formation and therefore do not support multinomial criteria that involve trade-offs between attributes at the choice set formation stage. This study proposes a novel behavioral paradigm consisting of a hybrid compensatory–noncompensatory choice set formation process, followed by compensatory choice. The behavioral paradigm is represented by a mathematical model that combines multinomial-response and ordered-response thresholds with a utility-based choice. The proposed model is applied to a stated preference experiment of off-campus rental apartment choices by students. Results demonstrate the applicability and feasibility of incorporating multinomial-response thresholds into semicompensatory models.
Get full access to this article
View all access and purchase options for this article.
References
1. Ben-Akiva M. E., and Boccara B. Discrete Choice Models with Latent Choice Sets. International Journal of Research in Marketing, Vol. 12, 1995, pp. 9–24.
2. Simon H. A. A Behavioral Model of Rational Choice. The Quarterly Journal of Economics, Vol. 69, 1955, pp. 99–118.
3. Yates J., and Mackay D.F. Discrete Choice Modeling of Urban Housing Markets: A Critical Review and an Application. Urban Studies, Vol. 43, 2006, pp. 559–581.
4. Chattopadhyay S. The Effectiveness of McFadden's Nested Logit Model in Valuing Amenity Improvement. Regional Science and Urban Economics, Vol. 30, 2000, pp. 23–43.
5. Payne J. W. Task Complexity and Contingent Processing in Decision Making: An Information Search and Protocol Analysis. Organizational Behavior and Human Performance, Vol. 16, 1976, pp. 366–387.
6. Shocker A.D., Ben-Akiva M. E., Boccara B., and Nedungadi P. Consideration Set Influences on Consumer Decision-Making and Choice: Issues, Models and Suggestions. Marketing Letters, Vol. 2, 1991, pp. 187–197.
7. Bas˛ar G., and Bhat C.R. A Parameterized Consideration Set Model for Airport Choice: An Application to the San Francisco Bay Area. Transportation Research Part B: Methodological, Vol. 38, 2004, pp. 889–904.
8. Kaplan S., Bekhor S., and Shiftan Y. Two-Stage Model for Jointly Revealing Determinants of Noncompensatory Conjunctive Choice Set Formation and Compensatory Choice. In Transportation Research Record: Journal of the Transportation Research Board, No. 2134, Transportation Research Board of the National Academies, Washington, D.C., 2009, pp. 153–163.
9. Borgers A., Timmermans H., and Veldhuisen J. A Hybrid Compensatory-Non-Compensatory Model for Residential Preference Structures. Journal of Housing and the Built Environment, Vol. 1, 1986, pp. 227–234.
10. Gensch D. H. A Two-Stage Disaggregate Attribute Choice Model. Marketing Science, Vol. 6, 1987, pp. 223–239.
11. Bierlaire M., Hurtubia R., and Flötteröd G. Analysis of Implicit Choice Set Generation Using a Constrained Multinomial Logit Model. In Transportation Research Record: Journal of the Transportation Research Board, No. 2175, Transportation Research Board of the National Academies, Washington, D.C., 2010, pp. 92–97.
12. Morikawa T. A Hybrid Probabilistic Choice Set Model with Compensatory and Non-Compensatory Choice Rules. Proc., 7th World Conference on Transportation Research (WCTR), Sydney, New South Wales, Australia, 1995.
13. Swait J. A. Choice Set Generation Within the Generalized Extreme Value of Discrete Choice Models. Transportation Research Part B: Methodological, Vol. 35, 2001, pp. 643–666.
14. Cantillo V., and de Dios Ortúzar J. A Semi-Compensatory Choice Model with Explicit Attribute Thresholds of Perception. Transportation Research Part B: Methodological, Vol. 39, 2005, pp. 641–657.
15. Cantillo V., Heydecker B., and de Dios Ortúzar J. A Discrete Choice Model Incorporating Thresholds for Perception in Attribute Values. Transportation Research Part B: Methodological, Vol. 40, 2006, pp. 807–825.
16. Zheng J., and Guo J.Y. Destination Choice Model Incorporating Choice Set Formation. Presented at 87th Annual Meeting of the Transportation Research Board, Washington, D.C., 2008.
17. Castro M., Martinez F., and Munizaga M. Calibration of a Logit Discrete Choice Model with Elimination of Alternatives. Proc., International Choice Modelling Conference, Harrogate, United Kingdom, 2009.
18. Swait J. A. Non-Compensatory Choice Model Incorporating Attribute Cutoffs. Transportation Research Part B: Methodological, Vol. 35, 2001, pp. 903–928.
19. Todd P.M., and Gigerenzer G. Bounding Rationality to the World. Journal of Economic Psychology, Vol. 24, 2003, pp. 143–165.
20. Punj G., and Moore R. Information Search and Consideration Set Formation in a Web-Based Store Environment. Journal of Business Research, Vol. 62, 2009, pp. 644–650.
21. Simon H. A. Can There Be a Science of Complex Systems? In Unifying Themes in Complex Systems. Proceedings from the International Conference on Complex Systems (Bar-Yam Y., ed.), Perseus Press, Cambridge, Mass., 1999.
22. Einhorn H. J. The Use of Nonlinear, Non-Compensatory Models in Decision Making. Psychological Bulletin, Vol. 73, 1970, pp. 221–230.
23. Manski C. The Structure of Random Utility Models. Theory and Decision, Vol. 8, 1977, pp. 229–254.
24. Bhat C. R. Work Travel Mode Choice and Number of Non-Work Commute Stops. Transportation Research Part B: Methodological, Vol. 31, 1997, pp. 41–54.
25. Kaplan S., Bekhor S., and Shiftan Y. Web-Based Survey Design for Unraveling Semi-Compensatory Choice in Transport and Urban Planning. Transportation Planning and Technology, Vol. 35, No. 2, 2012.
26. Train K. Discrete Choice Methods with Simulation. Cambridge University Press, New York, 2009.
Cite article
Cite article
Cite article
OR
Download to reference manager
If you have citation software installed, you can download article citation data to the citation manager of your choice
Information, rights and permissions
Information
Published In
Article first published online: January 1, 2012
Issue published: January 2012
Authors
Metrics and citations
Metrics
Journals metrics
This article was published in Transportation Research Record: Journal of the Transportation Research Board.
VIEW ALL JOURNAL METRICSArticle usage*
Total views and downloads: 18
*Article usage tracking started in December 2016
Altmetric
See the impact this article is making through the number of times it’s been read, and the Altmetric Score.
Learn more about the Altmetric Scores
Articles citing this one
Receive email alerts when this article is cited
Web of Science: 0
Crossref: 2
- Effect of transport transfer quality on intercity passenger mode choic...
- A comprehensive dwelling unit choice model accommodating psychological...
Figures and tables
Figures & Media
Tables
View Options
Get access
Access options
If you have access to journal content via a personal subscription, university, library, employer or society, select from the options below:
loading institutional access options
Alternatively, view purchase options below:
Purchase 24 hour online access to view and download content.
Access journal content via a DeepDyve subscription or find out more about this option.
