Discrete Choice Modeling and Its Applications in Transport and Housing Studies

Donggen Wang

Many practical policy issues are concerned with the choice of individual persons or households. For example, the effectiveness of road pricing in reducing traffic congestion depends on how the charge for using busy roads affect individual trip makers' choice of transport mode; the success of developing environmental friendly neighborhoods depends on how do households value environmental concerns in their choice of residual place. Based on consumer behavior theory, discrete choice modeling is an approach to analyze the decision making or choice behaviors of individuals and households. It has been widely applied in many study fields including housing, transportation, marketing, etc. Discrete choice models may help identify not only the significant factors affecting choices (housing choices, residential choice, transport mode choice, location choice, brand choice, etc.) but also the market segments of different products or services. The modeling results provide essential information for policy analysis.

This workshop will introduce this modeling approach and discuss its application in transportation and housing studies. The underlying assumptions and theories and different types of models will be discussed. Emphasis will be placed on how to develop discrete choice models from revealed and stated preference data. The applications of the modeling approach will be illustrated by my recent research works on transportation and housing studies.