Table of Contents

Handbook of Choice Modelling

Handbook of Choice Modelling

Elgar original reference

Edited by Stephane Hess and Andrew Daly

Choice modelling is an increasingly important technique for forecasting and valuation, with applications in fields such as transportation, health and environmental economics. For this reason it has attracted attention from leading academics and practitioners and methods have advanced substantially in recent years. This Handbook, composed of contributions from senior figures in the field, summarises the essential analytical techniques and discusses the key current research issues. It will be of interest to academics, students and practitioners in a wide range of areas.

Chapter 16: Discrete choice decision-making with multiple decision-makers within the household

André de Palma, Nathalie Picard and Ignacio Inoa

Subjects: economics and finance, environmental economics, transport, environment, environmental economics, transport, urban and regional studies, transport


Different research streams concerned with household decision-making have developed independently in different disciplines. The corresponding papers consider topics such as labour supply, transportation decisions, time and task allocation, or residential and employment choices. Literature in these fields has been dominated by models in which the household is treated as a single decision-making unit or unitary models (see Timmermans, 2009, for an extensive review on past research in the transportation literature, Vermeulen, 2002a and 2002b for a literature review on unitary and collective household models, and Bianchi and Robinson, 1997, for a sociological study of time use within the household). In collective models, the different household members are engaged in a joint decision process involving bargaining. Until recently, interactions within the household were not explicitly modelled and the decision-making process outcome was considered as resulting from a representative individual (as if the household were a black box which needs not to be opened). In such models, household interactions were either introduced through explanatory variables defined at the household level, or simply disregarded in models of activity-travel demand (see Srinivasan and Bhat, 2005). Examples of household-level explanatory variables like number of household members, of active members, of children, household income and other household dummy variables (for example, occupational status, property status, and age) are provided in Townsend (1987) or in Golob and McNally (1997), among others.

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