2014
DOI: 10.1016/j.tra.2014.03.010
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Integrating psychometric indicators in latent class choice models

Abstract: Latent class models are a convenient and intuitive way to introduce taste heterogeneity in discrete choice models by relating attributes of the decision makers with unobserved behavioral classes, hence allowing for a more accurate market segmentation. Estimation and specification of latent class models can be improved with the use of psychometric indicators that measure the effect of unobserved attributes in the individual preferences. This paper proposes a method to introduce these additional indicators in th… Show more

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Cited by 41 publications
(23 citation statements)
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“…We construct the class assignment probability as a function of a subset of the latent variables z * 2n (cf. Hurtubia et al, 2014), following a multinomial distribution with probabilities…”
Section: Identification Of Latent Variablesmentioning
confidence: 99%
See 1 more Smart Citation
“…We construct the class assignment probability as a function of a subset of the latent variables z * 2n (cf. Hurtubia et al, 2014), following a multinomial distribution with probabilities…”
Section: Identification Of Latent Variablesmentioning
confidence: 99%
“…In this work we use a full information estimator for the combination of a hybrid choice model with a latent class module. Our methodological approach differs from the work of Hurtubia et al (2014) in that we model the effect of the latent variables on the class assignment probabilities. The remainder of the paper proceeds as follows.…”
Section: Introductionmentioning
confidence: 99%
“…In future applications of this work, attitudinal dimensions could be used in choice modelling to explain and predict travel behaviour (Hess et al 2013;Hurtubia et al 2014;Vredin Johannson et al 2006).…”
Section: Discussionmentioning
confidence: 98%
“…This approach (Hurtubia et al, 2014) does not attempt to categorize continuous latent variables per se, but rather to include psychometric indicators into a latent class framework. In this structure, it is assumed that the latent variable depends exclusively on positively observed characteristics of the individuals (X) 4 , while its error term follows a Logistic distribution with zero mean and scale parameter λ (which has to be fixed without loss of generality).…”
Section: B) Latent Class With Psychometric Indicators Approach (Lcpi)mentioning
confidence: 99%
“…In the LCPI classes are defined exclusively to maximize the goodness-of-fit and are not based on theoretical assumptions (additionally, the measurement equations would have more degrees-of-freedom). As a matter of fact, if we consider the likelihood of the discrete choice component only, it is clear that a simple latent class model (with no indicators) would outperform every competing approach (including the LCPI; Hurtubia et al, 2014), as in this case the latent classes do not have to satisfy, additionally, a distribution of indicators or theoretical assumptions.…”
Section: Case Studiesmentioning
confidence: 99%