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If you choose not to decide, you still have made a choice

Bahamonde-Birke, Francisco J. and Navarro, Isidora and Ortúzar, Juan de Dios (2016) If you choose not to decide, you still have made a choice. Journal of Choice Modelling. Elsevier. doi: 10.1016/j.jocm.2016.11.002. ISSN 1755-5345.

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When designing stated-choice experiments modellers may consider offering respondents an “indifference” alternative to avoid stochastic choices when utility differences between alternatives are perceived as too small. By doing this, the modeller avoids adding white noise to the data and may gain additional information. This paper proposes a framework to model discrete choices in the presence of indifference alternatives. The approach allows depicting the likelihood function, independent of the number of alternatives in the choice-set and in the subset of indifference alternatives, offering a new approach to existing methods that are only defined for binary choice situations. The method is tested with the help of simulated and real data observing that the proposed framework allows recovering the parameters used in the generation of the synthetic datasets without major difficulties in most cases. Alternative approaches, such as considering the indifference option as an opt-out alternative or ignoring the indifference choices are clearly outperformed by the proposed framework and appear not capable of recovering parameters in the simulated set.

Item URL in elib:https://elib.dlr.de/108644/
Document Type:Article
Title:If you choose not to decide, you still have made a choice
AuthorsInstitution or Email of AuthorsAuthor's ORCID iDORCID Put Code
Bahamonde-Birke, Francisco J.DLR / DIW-Berlin / TU-BerlinUNSPECIFIEDUNSPECIFIED
Navarro, IsidoraPontificia Universidad Católica de ChileUNSPECIFIEDUNSPECIFIED
Ortúzar, Juan de DiosPontificia Universidad Católica de ChileUNSPECIFIEDUNSPECIFIED
Date:December 2016
Journal or Publication Title:Journal of Choice Modelling
Refereed publication:Yes
Open Access:No
Gold Open Access:No
In ISI Web of Science:Yes
Keywords:Discrete choice models, indifference, stated-choice experiments.
HGF - Research field:Aeronautics, Space and Transport
HGF - Program:Transport
HGF - Program Themes:Transport System
DLR - Research area:Transport
DLR - Program:V VS - Verkehrssystem
DLR - Research theme (Project):V - Verkehrsentwicklung und Umwelt II (old), V - Urbane Mobilität (old)
Location: Berlin-Adlershof
Institutes and Institutions:Institute of Transport Research > Mobility and Urban Development
Deposited By: Bahamonde Birke, Francisco Jose
Deposited On:11 Jan 2017 09:45
Last Modified:14 Nov 2023 13:37

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