Discrete choice models incorporating revealed preferences and psychometric data

Abstract

This paper proposes a methodology for incorporating psychometric data such as stated preferences and subjective ratings of service attributes in econometric consumer's discrete choice models. Econometric formulation of the general framework of the methodology is presented, followed by two practical submodels. The first submodel combines revealed preference (RP) and stated preference (SP) data to estimate discrete choice models. The second submodel combines a linear structural equation model with a discrete choice model to incorporate latent attributes into the choice model using attitudinal data as their indicators. Empirical case studies on travel mode choice analysis demonstrate the effectiveness and practicality of the methodology.

Citation

Morikawa, T., Ben-Akiva, M. and McFadden, D. (2002), "Discrete choice models incorporating revealed preferences and psychometric data", Advances in Econometrics (Advances in Econometrics, Vol. 16), Emerald Group Publishing Limited, Leeds, pp. 29-55. https://doi.org/10.1016/S0731-9053(02)16003-8