Recognising the irrelevance of statewise–dominated alternatives in defining the composition of a choice set
Field | Value | Language |
dc.contributor.author | Hensher, David A. | |
dc.contributor.author | Ho, Chinh | |
dc.date.accessioned | 2018-11-21 | |
dc.date.available | 2018-11-21 | |
dc.date.issued | 2014-05-01 | |
dc.identifier.issn | ISSN 1832-570X | |
dc.identifier.uri | http://hdl.handle.net/2123/19192 | |
dc.description.abstract | This paper is motivated by the primary idea (or curiosity) that the distribution of choice probabilities associated with a set of alternatives defining a given choice set provides strong evidence on the way that agents appear to process the description of each alternative in a stated choice experiment, conditional on other contextual influences that are agent specific. The supplementary interest is in the extent to which the established probability distribution, given the ranking of a set of alternatives, is able to be the basis of establishing whether a specific decision rule (within a utility maximising setting) offers the preferred behavioural ‘explanation’ of which alternatives really matter in choice making. Examples of interest include decision rules such as the relevance, in a rank order of alternatives, of all offered alternatives, variants of best-worst, and first best-second best. The underlying theoretical context to guide the preference ruling (or candidate alternatives under a rank order) is the Axiom of Irrelevance of Statewise Dominated Alternatives (ISDA) proposed by Quiggin (1995). In this paper we use a choice experiment on road pricing reform scenarios to illustrate a way to determine, under utility maximisation and knowledge of the full rank order of offered alternatives in a choice experiment, which set of alternatives satisfies ISDA and hence is a preferred choice set to use in estimation and application of a choice model. | en_AU |
dc.relation.ispartofseries | ITLS‐WP‐14‐09 | en_AU |
dc.subject | best-worst, first best, second best, choice models, choice sets, full rank, irrelevance of statewise dominated alternatives, road pricing reform, choice experiment | en_AU |
dc.title | Recognising the irrelevance of statewise–dominated alternatives in defining the composition of a choice set | en_AU |
dc.type | Working Paper | en_AU |
dc.contributor.department | ITLS | en_AU |
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