Process and context in choice models

Abstract

We develop a general framework that extends choice models by including an explicit representation of the process and context of decision making. Process refers to the steps involved in decision making. Context refers to factors affecting the process, focusing in this paper on social networks. The extended choice framework includes more behavioral richness through the explicit representation of the planning process preceding an action and its dynamics and the effects of context (family, friends, and market) on the process leading to a choice, as well as the inclusion of new types of subjective data in choice models. We discuss the key issues involved in applying the extended framework, focusing on richer data requirements, theories, and models, and present three partial demonstrations of the proposed framework. Future research challenges include the development of more comprehensive empirical tests of the extended modeling framework.

Improving the analysis of road pricing acceptability surveys by using hybrid models

“…Then, two methods based on modelling: discrete choice and hybrid choice models. The latter including attitudes and perceptions seems to be a more powerful tool for integrating the economical variables with a deep attitudinal construct, that is latent variable (Ben-Akiva et al, 2012). This paper approaches the question of the acceptability of road pricing by examining the collected primary data and integrating socioeconomic and psychological considerations using hybrid model.…”

Incorporating social interaction into hybrid choice models

“…The output of the decision-making process is determined by an interaction between impulsive or emotionally based systems responding to potential rewards and losses, and reflective or cognitive control systems controlling long-term goals (Visser et al 2011). The description of choice behavior can be given more structure by describing choice behavior as a decision making process involving two dimensions: process and context (Ben-Akiva et al 2012). Process refers to the steps involved in decision-making, while context refers to the factors affecting the process.…”

Farmers’ willingness to invest in livestock disease control: the case of voluntary vaccination against bluetongue

“…The integrated choice and latent variable (ICLV) model is an extended discrete choice model, in which next to preferences, these constructs are modelled to account for heterogeneity in preferences. It offers a general econometric framework to supplement economic theory with concepts or theories from social sciences Walker et al, 2007;Ben-Akiva et al, 2012). Some of the process (steps involved in decision making) and context (factors affecting the process) are taken into account, and so enhance the behavioural representation in economic models.…”

“…The application of an integrated choice and latent variable model approach from marketing and transport economics in chapter 6 is novel to the agricultural and animal health economics literature. This model is based on generalised random utility theory (Walker, 2001;Walker and Ben-Akiva, 2002;Ben-Akiva et al, 2012) and offers a general econometric framework to supplement economic theory with concepts or theories from social sciences. The idea of integrating social-psychological constructs into choice models to explain preference heterogeneity is not new (e.g.…”

“…Here, farmers' behaviour in the ABM is modelled using the integrated choice and latent variable model (ICLV) framework. The ICLV model offers a general econometric framework to supplement economic theory with concepts or theories from other social sciences Ben-Akiva et al, 2012). Such models are seen as a promising way to model individual behaviour in ABM (Bruch and Atwell, 2015;Klabunde and Willekens, 2016).…”