Risky Weighting in Discrete Choice
Field | Value | Language |
dc.contributor.author | Li, Baibing | |
dc.contributor.author | Hensher, David A. | |
dc.date.accessioned | 2018-11-23 | |
dc.date.available | 2018-11-23 | |
dc.date.issued | 2017-05-01 | |
dc.identifier.issn | ISSN 1832-570X | |
dc.identifier.uri | http://hdl.handle.net/2123/19544 | |
dc.description.abstract | This paper presents a new approach to discrete choice analysis for risky prospects. Conventional discrete choice analysis focuses on riskless prospects and does not deal with the scenario where the alternatives that the decision-makers choose from are associated with risk. In this paper, we investigate decision-makers’ risk perception and choice behaviour in choice experiments when they are facing several risky prospects. We propose a broad class of cumulative risky weighting functions, upon which a unified cumulative risky weighting function is developed. We show that this unified cumulative risky weighting function includes several existing cumulative risky weighting functions as special cases. We then develop a multivariate method for choice analysis with risky prospects to account for decision-makers’ individual-specific risk perception and the impact of various factors on the value function respectively. We illustrate the developed method using an empirical study on road tolling in Australia. | en_AU |
dc.relation.ispartofseries | ITLS-WP-17-10 | en_AU |
dc.subject | cumulative prospect theory; discrete choice analysis, risk perception; road tolling; travel time. | en_AU |
dc.title | Risky Weighting in Discrete Choice | en_AU |
dc.type | Working Paper | en_AU |
dc.contributor.department | ITLS | en_AU |
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