Hybrid choice model

Hybrid choice models are advanced econometric tools used to capture the decision-making processes of individuals by integrating both observable and unobservable factors. Traditional choice models, such as discrete choice models, rely solely on observable variables and choices made by individuals to infer preferences and predict future behavior. Hybrid choice models enrich this framework by incorporating latent variables, which are psychological constructs like attitudes, perceptions, and preferences that influence decision-making but they are not directly measurable.{{Cite journal |last1=Ben-Akiva |first1=Moshe |last2=Mcfadden |first2=Daniel |last3=Train |first3=Kenneth |last4=Walker |first4=Joan |last5=Bhat |first5=Chandra |last6=Bierlaire |first6=Michel |last7=Bolduc |first7=Denis |last8=Boersch-Supan |first8=Axel |last9=Brownstone |first9=David |last10=Bunch |first10=David S. |last11=Daly |first11=Andrew |last12=De Palma |first12=Andre |last13=Gopinath |first13=Dinesh |last14=Karlstrom |first14=Anders |last15=Munizaga |first15=Marcela A. |date=2002-08-01 |title=Hybrid Choice Models: Progress and Challenges |url=https://doi.org/10.1023/A:1020254301302 |journal=Marketing Letters |language=en |volume=13 |issue=3 |pages=163–175 |doi=10.1023/A:1020254301302 |issn=1573-059X|hdl=10533/173383 |hdl-access=free }} This integration allows hybrid choice models to provide a deeper understanding of choice behavior, recognizing that decisions are not only influenced by tangible variables such as price and quality but also by subjective factors like trust, satisfaction, and risk aversion.{{Citation |last1=Abou-Zeid |first1=Maya |title=Hybrid choice models |date=2014-08-29 |work=Handbook of Choice Modelling |pages=383–412 |url=https://www.elgaronline.com/display/edcoll/9781781003145/9781781003145.00025.xml |access-date=2024-05-16 |publisher=Edward Elgar Publishing |language=en-US |isbn=978-1-78100-315-2 |last2=Ben-Akiva |first2=Moshe}}

The application of hybrid choice models spans various fields, including transportation, marketing, and environmental economics, where understanding the complexity of human behavior is crucial. For instance, in transportation planning, hybrid choice models can model how travelers' attitudes toward convenience, environmental concerns, and safety affect their choice of transport modes.{{Cite conference |last1=Cherchi |first1=Elisabetta |last2=Börjesson |first2=Maria |last3=Bierlaire |first3=Michel |date=July 3–5, 2013 |title=A hybrid mode choice model to account for the dynamic effect of inertia over time |conference=International Choice Modelling Conference |url=https://orbit.dtu.dk/en/publications/a-hybrid-mode-choice-model-to-account-for-the-dynamic-effect-of-i |location=Sydney, Australia}}{{Cite journal |last1=Walker |first1=Joan |last2=Ben-Akiva |first2=Moshe |date=2002-07-01 |title=Generalized random utility model |url=https://www.sciencedirect.com/science/article/pii/S0165489602000239 |journal=Mathematical Social Sciences |series=Random Utility Theory and Probabilistic measurement theory |volume=43 |issue=3 |pages=303–343 |doi=10.1016/S0165-4896(02)00023-9 |issn=0165-4896|url-access=subscription }}{{Citation |last1=Vij |first1=Akshay |title=Hybrid choice models: the identification problem |date=2014-08-29 |work=Handbook of Choice Modelling |pages=519–564 |url=https://www.elgaronline.com/edcollchap/edcoll/9781781003145/9781781003145.00031.xml |access-date=2024-05-18 |publisher=Edward Elgar Publishing |language=en-US |isbn=978-1-78100-315-2 |last2=Walker |first2=Joan L.}} By capturing these latent variables through surveys or inferred through observable indicators, researchers and policymakers can design more effective interventions and policies. Hybrid choice models also offer the advantage of improved prediction accuracy and policy relevance, as they can simulate how changes in both observable and latent factors might influence future choices, thus providing a comprehensive framework for understanding and influencing behavior.

Applications

Hybrid choice models are versatile tools used to integrate both observable and unobservable factors influencing decision-making. Here are some types of applications for hybrid choice models:

Transportation planning;{{Cite journal |last1=Chorus |first1=Caspar G. |last2=Kroesen |first2=Maarten |date=2014-11-01 |title=On the (im-)possibility of deriving transport policy implications from hybrid choice models |url=https://www.sciencedirect.com/science/article/pii/S0967070X14001905 |journal=Transport Policy |volume=36 |pages=217–222 |doi=10.1016/j.tranpol.2014.09.001 |issn=0967-070X|url-access=subscription }}{{Cite journal |last1=Bolduc |first1=Denis |last2=Boucher |first2=Nathalie |last3=Alvarez-Daziano |first3=Ricardo |date=January 2008 |title=Hybrid Choice Modeling of New Technologies for Car Choice in Canada |url=http://journals.sagepub.com/doi/10.3141/2082-08 |journal=Transportation Research Record: Journal of the Transportation Research Board |language=en |volume=2082 |issue=1 |pages=63–71 |doi=10.3141/2082-08 |issn=0361-1981|url-access=subscription }}
Marketing and consumer behavior;{{Cite book |url=https://ageconsearch.umn.edu/record/164855/?v=pdf |title=Measuring consumer preferences using hybrid discrete choice models |date=2013 |editor-last=Palma |editor-first=David |series=AAWE Working Papers |editor-last2=Dios Ortuzar |editor-first2=Juan de |editor-last3=Casaubon |editor-first3=Gerard |editor-last4=Rizzi |editor-first4=Luis I. |editor-last5=Agosin |editor-first5=Eduardo}}
Health economics;{{Cite journal |last1=Kløjgaard |first1=Mirja Elisabeth |last2=Hess |first2=Stephane |date=2014-08-01 |title=Understanding the formation and influence of attitudes in patients' treatment choices for lower back pain: Testing the benefits of a hybrid choice model approach |url=https://www.sciencedirect.com/science/article/pii/S0277953614003591 |journal=Social Science & Medicine |volume=114 |pages=138–150 |doi=10.1016/j.socscimed.2014.05.058 |pmid=24929915 |issn=0277-9536}}
Environmental economics;{{Cite journal |last1=Amaris |first1=Gloria |last2=Hess |first2=Stephane |last3=Gironás |first3=Jorge |last4=Ortúzar |first4=Juan de Dios |date=2021-01-01 |title=Using hybrid choice models to capture the impact of attitudes on residential greywater reuse preferences |url=https://www.sciencedirect.com/science/article/pii/S0921344920304882 |journal=Resources, Conservation and Recycling |volume=164 |pages=105171 |doi=10.1016/j.resconrec.2020.105171 |bibcode=2021RCR...16405171A |issn=0921-3449|url-access=subscription }}
Housing and real estate;{{Cite journal |last1=Amaris |first1=Gloria |last2=Hess |first2=Stephane |last3=Gironás |first3=Jorge |last4=Ortúzar |first4=Juan de Dios |date=2021-01-01 |title=Using hybrid choice models to capture the impact of attitudes on residential greywater reuse preferences |url=https://www.sciencedirect.com/science/article/pii/S0921344920304882 |journal=Resources, Conservation and Recycling |volume=164 |pages=105171 |doi=10.1016/j.resconrec.2020.105171 |bibcode=2021RCR...16405171A |issn=0921-3449|url-access=subscription }}
Public policy;{{Cite journal |last1=Salak |first1=B. |last2=Lindberg |first2=K. |last3=Kienast |first3=F. |last4=Hunziker |first4=M. |date=2021-06-01 |title=How landscape-technology fit affects public evaluations of renewable energy infrastructure scenarios. A hybrid choice model |url=https://www.sciencedirect.com/science/article/pii/S1364032121001908 |journal=Renewable and Sustainable Energy Reviews |volume=143 |pages=110896 |doi=10.1016/j.rser.2021.110896 |bibcode=2021RSERv.14310896S |issn=1364-0321|doi-access=free }}
Tourism;{{Cite journal |last1=Wen |first1=Long |last2=Liu |first2=Chang |last3=Song |first3=Haiyan |date=May 2019 |title=Forecasting tourism demand using search query data: A hybrid modelling approach |url=http://journals.sagepub.com/doi/10.1177/1354816618768317 |journal=Tourism Economics |language=en |volume=25 |issue=3 |pages=309–329 |doi=10.1177/1354816618768317 |issn=1354-8166|hdl=10397/104757 |hdl-access=free }}{{Cite journal |last1=Albaladejo |first1=Isabel P |last2=Díaz-Delfa |first2=M Teresa |date=November 2021 |title=The effects of motivations to go to the country on rural accommodation choice: A hybrid discrete choice model |url=http://journals.sagepub.com/doi/10.1177/1354816620912062 |journal=Tourism Economics |language=en |volume=27 |issue=7 |pages=1484–1507 |doi=10.1177/1354816620912062 |issn=1354-8166|url-access=subscription }}
Safety;{{Cite journal |last1=Márquez |first1=Luis |last2=Cantillo |first2=Víctor |last3=Arellana |first3=Julián |date=2015-05-01 |title=Mobile phone use while driving: A hybrid modeling approach |url=https://www.sciencedirect.com/science/article/pii/S0001457515000573 |journal=Accident Analysis & Prevention |volume=78 |pages=73–80 |doi=10.1016/j.aap.2015.02.016 |pmid=25746167 |issn=0001-4575|url-access=subscription }}
Disaster;{{Cite journal |last1=Xu |first1=Chenchen |last2=Fuellhart |first2=Kurt |last3=Luo |first3=Yiyang |last4=Shao |first4=Quan |last5=Witlox |first5=Frank |date=2024-02-01 |title=Understanding passenger exit choices during airplane emergencies: Insights from hybrid choice modeling |url=https://www.sciencedirect.com/science/article/pii/S0925753523003119 |journal=Safety Science |volume=170 |pages=106369 |doi=10.1016/j.ssci.2023.106369 |issn=0925-7535|url-access=subscription }}{{Cite journal |last1=Lovreglio |first1=Ruggiero |last2=Kuligowski |first2=Erica |last3=Walpole |first3=Emily |last4=Link |first4=Eric |last5=Gwynne |first5=Steve |date=2020-11-01 |title=Calibrating the Wildfire Decision Model using hybrid choice modelling |url=https://www.sciencedirect.com/science/article/pii/S2212420920312723 |journal=International Journal of Disaster Risk Reduction |volume=50 |pages=101770 |doi=10.1016/j.ijdrr.2020.101770 |bibcode=2020IJDRR..5001770L |issn=2212-4209}}

References

Category:Choice modelling

Category:Economics models

Category:Econometric modeling