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Discrete choice research: a guide to experimental design, model specification, and model estimation with R scripts

Discrete choice research: a guide to experimental design, model specification, and model estimation with R scripts

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Decision research has applications in a wide range of fields from marketing to healthcare to environmental science all over the world. For example, it is required as part of feasibility studies for public transport investments if they are co-financed by the European Union. The publication presents an introduction to applied decision-making research using the experimental method of expressed preferences and discrete choice analysis, focusing especially on the use of these methods in transport. The introduction briefly covers the history of decision-making research and some methodological assumptions of this research. It also presents the basic decision-making model, the design of the expressed preferences experiment, and the subsequent data analysis. On two examples, it shows the practical use of the method of expressed preferences and discrete choice analysis, it shows the creation of the design of the experiment and the analysis of the results in practice, including the interpretation of the results. The book works with the author's freely accessible datasets and with scripts written for the statistical tool R. After reading the book, the reader will be able to prepare a simple research on expressed preferences, analyze it using basic models of discrete choices and interpret the basic results.

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Detail

Author

  • Simeček M.

Content

1. Introduction

2. Decision-making models
2.1 Basic decision-making model
2.2 The principle of independence of irrelevant alternatives
2.3 Models with a nested structure - nested logit
2.4 Model for aggregated alternatives
2.5 Mixed models
2.6 Discrete Choice Analysis Software

3. Creation of the experiment
3.1 Preparation of the scenario
3.2 Design of the experiment
3.3 Personalization of the experiment
3.4 Adaptive Testing
3.5 Selection of Respondents
3.6 Pilot study

4. Analysis of discrete choices
4.1 Parameter estimation and model quality assessment
4.2 Quantification of parameters
4.3 Elasticity
4.4 Interpretation of coefficients in mixed models

5. Case study: Choosing a student housing rental
5.1 Preparation of the experiment
5.2 Selection File
5.3 Preparation of data
5.4 Basic model
5.5 Mixed model
5.6 Quantification of parameters
5.7 Summary

6. Case study: choosing a means of transport for a trip around the Brno metropolitan area (BMO)
6.1 Preparation of the experiment
6.2 Selection File
6.3 Preparation of data
6.4 Model for total data
6.5 Quantification of model parameters for total data
6.6 Models for Brno residents and residents of the hinterland of Brno
6.7 Quantification of model parameters for the people of Brno and residents of the hinterland of Brno
6.8 Elasticity of choice of transport mode - incremental model
6.9 Summary

7. Conclusion
7.1 Combination of RP and SP data
7.2 Discrete choice models in transport models
7.3 Further study

Dedication

The methodology was created with the state support of the Ministry of Education, Youth and Sports within the framework of the National Sustainability Program I, project Transport Research and Development Center (LO1610).

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