TY - GEN
T1 - Bias caused by omitted variables in random regret choice models
T2 - 21st International Conference of Hong Kong Society for Transportation Studies: Smart Transportation, HKSTS 2016
AU - Jang, S.
AU - Rasouli, S.
AU - Timmermans, H. J.P.
N1 - Publisher Copyright:
© 2018 Hong Kong Society for Transportation Studies Limited. All rights reserved.
PY - 2018
Y1 - 2018
N2 - The aim of this study is to explore the bias caused by omitted variables in both random utility and random regret models. Since the behavioural underpinnings of these models differ, the bias is also expected to differ. We focus our analysis on stated choice data, based on orthogonal fractional factorial experimental designs, because the endogeneity, defined as a correlation between selected and omitted explanatory variables is a nonissue in such data. We will show that while the bias caused by omitted variables in the random utility model can be simply neutralised by using alternative specific constants, it still exists in the random regret model because the bias in this type of choice models depends on the attribute dominance structure in the data and thus is not constant.
AB - The aim of this study is to explore the bias caused by omitted variables in both random utility and random regret models. Since the behavioural underpinnings of these models differ, the bias is also expected to differ. We focus our analysis on stated choice data, based on orthogonal fractional factorial experimental designs, because the endogeneity, defined as a correlation between selected and omitted explanatory variables is a nonissue in such data. We will show that while the bias caused by omitted variables in the random utility model can be simply neutralised by using alternative specific constants, it still exists in the random regret model because the bias in this type of choice models depends on the attribute dominance structure in the data and thus is not constant.
KW - Omitted variables
KW - Regret minimization
KW - Utility maximization
UR - http://www.scopus.com/inward/record.url?scp=85050589950&partnerID=8YFLogxK
M3 - Conference article published in proceeding or book
AN - SCOPUS:85050589950
T3 - Proceedings of the 21st International Conference of Hong Kong Society for Transportation Studies, HKSTS 2016 - Smart Transportation
SP - 261
EP - 267
BT - Proceedings of the 21st International Conference of Hong Kong Society for Transportation Studies, HKSTS 2016 - Smart Transportation
A2 - Wong, Allan Wing Gun
A2 - Wong, Simon Ho Fai
A2 - Leung, Gordon Lai Ming
PB - Hong Kong Society for Transportation Studies Limited
Y2 - 10 December 2016 through 12 December 2016
ER -