A semi-compensatory choice model with probabilistic choice set: combining implicit choice set within probabilistic choice set formation

Abstract

The standard random utility model assumes a fully rational and compensatory choice behaviour. However, various research studies have proven that non-compensatory /semi-compensatory choice behaviour is more realistic. This paper proposes a semi-compensatory framework for the discrete choice model that combines probabilistic choice set formation along with implicit choice constraints in choice making. It combines the Independent Availability Logit (IAL) with Implicit Constrained Multinomial Logit model (CMNL). The model is applied to investigate the mode choice behaviour of the Ottawa-Gatineau regions of Canada’s capital by using the household travel survey data. The explanatory power and elasticity measures of the proposed model are compared with IAL and MNL models. It is found that the IAL-CMNL model outperforms both IAL and MNL models and can reproduce the choice set formation process more effectively. The empirical investigation shows that the IAL-CMNL model results in relatively higher tolerance and softer constraints for cut-off violations compared to the IAL model. Elasticity calculations and outcomes of this research highlight the importance of capturing choice set formation and constrained choice behaviour in the choice modelling.

KEYWORDS:

• Choice set formation
• cut-off violation
• soft constraints
• non-compensatory
• semi-compensatory choice behaviour
• attribute thresholds
• constrained logit model
• IAL model

Disclosure statement

No potential conflict of interest was reported by the author(s).

ORCID

Khandker Nurul Habib http://orcid.org/0000-0003-1007-6706