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Hybrid Choice Models
Hybrid choice models (HCMs) are extensions of classical discrete-choice models that combine what analysts can observe—prices, incomes and travel times—with what they cannot measure directly, such as attitudes, perceptions and habits. Unlike standard models, which recover preferences only from observed choices, an HCM links those choices to one or more latent variables—statistical constructs that represent psychological traits. Integrating such constructs into a random-utility framework improves both behavioural realism and predictive accuracy. Conceptual framework A typical HCM contains three interconnected blocks. Structural equations describe how latent variables depend on socio-economic characteristics and on one another; measurement equationsrelate each latent variable to survey indicators, creating a statistical bridge between unobserved attitudes and their noisy proxies; and a conventional choice model links both latent and manifest variables to the probability that ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Discrete Choice
In economics, discrete choice models, or qualitative choice models, describe, explain, and predict choices between two or more discrete alternatives, such as entering or not entering the labor market, or choosing between modes of transport. Such choices contrast with standard consumption models in which the quantity of each good consumed is assumed to be a continuous variable. In the continuous case, calculus methods (e.g. first-order conditions) can be used to determine the optimum amount chosen, and demand can be modeled empirically using regression analysis. On the other hand, discrete choice analysis examines situations in which the potential outcomes are discrete, such that the optimum is not characterized by standard first-order conditions. Thus, instead of examining "how much" as in problems with continuous choice variables, discrete choice analysis examines "which one". However, discrete choice analysis can also be used to examine the chosen quantity when only a few distinc ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Choice Modelling
Choice modelling attempts to model the decision process of an individual or segment via revealed preferences or stated preferences made in a particular context or contexts. Typically, it attempts to use discrete choices (A over B; B over A, B & C) in order to infer positions of the items (A, B and C) on some relevant latent scale (typically "utility" in economics and various related fields). Indeed many alternative models exist in econometrics, marketing, sociometrics and other fields, including utility maximization, optimization applied to consumer theory, and a plethora of other identification strategies which may be more or less accurate depending on the data, sample, hypothesis and the particular decision being modelled. In addition, choice modelling is regarded as the most suitable method for estimating consumers' willingness to pay for quality improvements in multiple dimensions. Related terms There are a number of terms which are considered to be synonyms with the term ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |