Saxena, S and Pinjari, AR and Bhat, CR (2022) Multiple discrete-continuous choice models with additively separable utility functions and linear utility on outside good: Model properties and characterization of demand functions. In: Transportation Research Part B: Methodological, 155 . pp. 526-557.
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Abstract
In this paper, we enhance the current understanding of the properties of multiple discrete-continuous (MDC) choice models with additively separable (AS), independent and identically distributed (IID) utility functions, and linear utility form on the essential outside good. First, we highlight that the prior implementations of this model in the literature ignore primal feasibility conditions related to the budget constraint and the essential nature of outside good in formulating the model likelihood function. Second, we evaluate the suitability and performance of the model for alternative consumption patterns relative to the budget. In addition, we provide a systematic comparison of the performance of MDC choice models with the linear outside good utility form (i.e., the Lγ-profile model) and those with the non-linear outside good utility form (i.e., the NLγ-profile model). Third, for the Lγ-profile model with infinite budgets (i.e., when a very small proportion of the budget is allocated to inside goods), we derive the distributions of the resulting optimal demand functions and analytic expressions for the corresponding first and second moments, and identify a property that makes it easy to estimate the utility function parameters of an inside alternative even when consumption data is not available for other alternatives. In addition, perhaps for the first time in the literature, we show how an independent system of Tobit models can be derived as a restricted version of the utility-theoretic Lγ-profile MDC model structure. Finally, we apply the model for an empirical analysis of expenditure patterns of leisure trips from a domestic tourism survey sample of households in India. © 2021 Elsevier Ltd
| Item Type: | Journal Article |
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| Publication: | Transportation Research Part B: Methodological |
| Publisher: | Elsevier Ltd |
| Additional Information: | The copyright for this article belongs to the Author. |
| Keywords: | Additives; Budget control; Leisure, Choice model; Demand function; Discrete/continuous; Linear outside good utility profile; Multiple discrete-continuous choice model; Performance; Property; Tobit model; Tourism travel expenditure; Utility functions, Functions |
| Department/Centre: | Division of Interdisciplinary Sciences > Center for Infrastructure, Sustainable Transportation and Urban Planning (CiSTUP) Division of Mechanical Sciences > Civil Engineering |
| Date Deposited: | 12 Jan 2022 05:44 |
| Last Modified: | 12 Jan 2022 05:44 |
| URI: | http://eprints.iisc.ac.in/id/eprint/70919 |
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