A hybrid choice model with a nonlinear utility function and bounded distribution for latent variables: application to purchase intention decisions of electric cars

Jinhee Kim, Soora Rasouli, Harry Timmermans

Research output: Contribution to journalArticle

7 Citations (Scopus)

Abstract

The hybrid choice model (HCM) provides a powerful framework to account for heterogeneity across decision-makers in terms of different underlying latent attitudes. Typically, effects of the latent attitudes have been represented assuming linear utility functions. In contributing to the further elaboration of HCMs, this study suggests an extended HCM framework allowing for nonlinear utility functions of choice alternatives including not only observed but also latent variables. Box–Cox transformations are used to represent the nonlinear utility function. Johnson’s SB distribution is suggested to represent the random term of the latent variables, satisfying the constraint of the Box–Cox transformation. An empirical study using stated choice data about the intention to purchase electric cars is conducted. The empirical results show that the proposed framework can capture nonlinear effects of underlying variables including latent attitudes, thereby enhancing the explanatory power of the choice model.

Original languageEnglish
Pages (from-to)909-932
Number of pages24
JournalTransportmetrica A: Transport Science
Volume12
Issue number10
DOIs
Publication statusPublished - 2016 Nov 25

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purchase
Railroad cars
decision maker

All Science Journal Classification (ASJC) codes

  • Transportation
  • Engineering(all)

Cite this

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