Random Regret Minimization: Exploration of a New Choice Model for Environmental and Resource Economics View Full Text


Ontology type: schema:ScholarlyArticle      Open Access: True


Article Info

DATE

2012-03

AUTHORS

Mara Thiene, Marco Boeri, Caspar G. Chorus

ABSTRACT

This paper introduces the discrete choice model-paradigm of Random Regret Minimization (RRM) to the field of environmental and resource economics. The RRM-approach has been very recently developed in the context of travel demand modelling and presents a tractable, regret-based alternative to the dominant choice-modelling paradigm based on Random Utility Maximization-theory (RUM-theory). We highlight how RRM-based models provide closed form, logit-type formulations for choice probabilities that allow for capturing semi-compensatory behaviour and choice set-composition effects while being equally parsimonious as their utilitarian counterparts. Using data from a Stated Choice-experiment aimed at identifying valuations of characteristics of nature parks, we compare RRM-based models and RUM-based models in terms of parameter estimates, goodness of fit, elasticities and consequential policy implications. More... »

PAGES

413-429

Identifiers

URI

http://scigraph.springernature.com/pub.10.1007/s10640-011-9505-7

DOI

http://dx.doi.org/10.1007/s10640-011-9505-7

DIMENSIONS

https://app.dimensions.ai/details/publication/pub.1033436435


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