Abstract
In this study, a Boundedly Rational Nested Logit (BRNL) model is proposed by introducing the concept of indifference threshold into Nested Logit (NL) model. In BRNL model, the traveler is assumed to choose randomly or in accordance with his preference if the expected cost difference between two alternatives is within the indifference band. Otherwise, the traveler will choose the alternative with the minimum expected cost. A nested method of successive average is developed to solve the proposed problem. Finally, the rationality of the model and effectiveness of the algorithm are proved by using a numerical example with three-mode transportation network. The results indicate that, different from NL model, the choices of the travelers in BRNL model do not depend on the costs always. The value of the indifference threshold will affect the choice probability. The larger the indifference threshold is, the less sensitive travelers are to the change of cost. In particular, if the indifference threshold is large enough, the travelers' choices will always depend on the preference.
Highlights
Discrete choice model is widely applied in an analysis of traveler behavior
NUMERICAL EXAMPLE We demonstrate and validate Boundedly Rational Nested Logit (BRNL) model with a three-mode transportation network shown as Figure 1
In this article, BRNL model is developed by introducing the idea of the indifference threshold
Summary
Discrete choice model is widely applied in an analysis of traveler behavior. The model assumes that the traveler is expected utility maximizer, namely traveler chooses an alternative within utility maximization always, even if the difference in utilities is negligible [1]–[4]. Guan: Travel Decision Making Model Based on NL Model Considering Bounded Rationality only if the time saving efficient by taking the new bridge than an indifference band They assumed the travelers are heterogeneous and the indifference band follows lognormal distribution.Carrion and Levinson [17] found that the threshold exists in the traveler’s route choice behavior by the analysis of GPS data. Incorporating ‘‘indifference threshold’’ into the research of travelers’ mode choice behavior, Krishnan [18] hypothesized that the ‘‘satisfier’’ in Simon’s theory would again become a utility maximizer if one alternative draws sufficient attraction than the other He defined indifference threshold as ‘‘minimum perceivable differences’’ between the utilities of two alternatives and proposed a minimum perceivable difference (MPD) model.
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