Asymmetric preference and loss aversion for electric vehicles: The reference-dependent choice model capturing different preference directions

2020 ◽  
Vol 86 ◽  
pp. 104666
Author(s):  
Junghun Kim ◽  
Hyunchan Seung ◽  
Jongsu Lee ◽  
Joongha Ahn
Keyword(s):  
Electric Vehicles ◽  
Loss Aversion ◽  
Choice Model ◽  
Dependent Choice

scholarly journals A regret-based route choice model with asymmetric preference in a stochastic network

2018 ◽  
Vol 10 (8) ◽  
pp. 168781401879323
Author(s):  
Lei Zhao ◽  
Hongzhi Guan ◽  
Xinjie Zhang ◽  
Xiongbin Wu
Keyword(s):  
Loss Aversion ◽  
Equilibrium Model ◽  
Choice Model ◽  
User Equilibrium ◽  
Stochastic User Equilibrium ◽  
Regret Minimization ◽  
Route Network ◽  
Travel Decision ◽  
Gains And Losses ◽  
Random Regret Minimization

In this study, a stochastic user equilibrium model on the modified random regret minimization is proposed by incorporating the asymmetric preference for gains and losses to describe its effects on the regret degree of travelers. Travelers are considered to be capable of perceiving the gains and losses of attributes separately when comparing between the alternatives. Compared to the stochastic user equilibrium model on the random regret minimization model, the potential difference of emotion experienced induced by the loss and gain in the equal size is jointly caused by the taste parameter and loss aversion of travelers in the proposed model. And travelers always tend to use the routes with the minimum perceived regret in the travel decision processes. In addition, the variational inequality problem of the stochastic user equilibrium model on the modified random regret minimization model is given, and the characteristics of its solution are discussed. A route-based solution algorithm is used to resolve the problem. Numerical results given by a three-route network show that the loss aversion produces a great impact on travelers’ choice decisions and the model can more flexibly capture the choice behavior than the existing models.

scholarly journals Loss Aversion and Consumption Choice: Theory and Experimental Evidence

2015 ◽  
Vol 7 (2) ◽  
pp. 101-120 ◽  
Author(s):  
Heiko Karle ◽  
Georg Kirchsteiger ◽  
Martin Peitz
Keyword(s):  
Experimental Evidence ◽  
Loss Aversion ◽  
Consumer Choice ◽  
Rational Expectations ◽  
Choice Theory ◽  
Choice Model ◽  
Reference Points ◽  
Price Uncertainty ◽  
Theoretical Predictions

We analyze a consumer-choice model with price uncertainty, loss aversion, and expectation-based reference points. The implications of this model are tested in an experiment in which participants have to make a consumption choice between two sandwiches. Participants differ in their reported taste for the two sandwiches and in their degree of loss aversion, which we measure separately. We find that more-loss-averse participants are more likely to opt for the cheaper sandwich, in line with theoretical predictions. The estimates in the model with rational expectations are slightly more significant than those with naïve expectations. (JEL D11, D12, D84, M31)

scholarly journals Loss Aversion and Consumption Plans with Stochastic Reference Points

2016 ◽  
Vol 16 (1) ◽  
pp. 303-336 ◽  
Author(s):  
Hyeon Park
Keyword(s):  
Decision Maker ◽  
Loss Aversion ◽  
Intertemporal Choice ◽  
Choice Model ◽  
State Dependence ◽  
Analytic Solutions ◽  
The State ◽  
Reference Points ◽  
State Dependent ◽  
The Individual

AbstractThis paper studies the making of risky choices following loss aversion with endogenous reference expectations under the two schemes of state-independent and state-dependent stochastic reference points. Using a tractable, intertemporal choice model, this paper derives analytic solutions to show that, when loss aversion is high, the reference-dependent decision maker saves a markedly larger amount than is predicted by the standard model. When the loss aversion is low (i.e. the individual is loss-tolerant), the overall result is ambiguous, although the decision maker may deviate into consuming more; if he faces a small level of uncertainty relative to the intensity of his loss aversion, he may even do this by borrowing. Given the same loss aversion level, this study determines that, in the presence of positive state-dependence, the state-independent model generates greater deviation than the state-dependent one. Finally, this paper derives a two-period general equilibrium result with two agents who have different attitudes toward loss.

scholarly journals Exploring Factors that Influence Individuals’ Choice Between Internal Combustion Engine Cars and Electric Vehicles

2020 ◽  
Vol 1 ◽  
pp. 1-23
Author(s):  
Dominik Bucher ◽  
Henry Martin ◽  
Jannik Hamper ◽  
Atefeh Jaleh ◽  
Henrik Becker ◽  
...  
Keyword(s):  
Internal Combustion Engine ◽  
Electric Vehicle ◽  
Electric Vehicles ◽  
Choice Model ◽  
Combustion Engine ◽  
Renewable Energy Sources ◽  
Internal Combustion ◽  
Transport Sector ◽  
Wide Range ◽  
Range Anxiety

Abstract. The adoption of electric vehicles has the potential to help decarbonizing the transport sector if they are powered by renewable energy sources. Limitations commonly associated with e-cars are their comparatively short ranges and long recharging cycles, leading to anxiety when having to travel long distances. Other factors such as temperature, destination or weekday may influence people in choosing an e-car for a certain trip. Using a unique dataset of 129 people who own both an electric vehicle (EV) as well as one powered by an internal combustion engine (ICE), we analyze tracking data over a year in order to have an empirically verified choice model. Based on a wide range of predictors, this model tells us for an individual journey if the person would rather choose the EV or the ICE car. Our findings show that there are only weak relations between the predictor and target variables, indicating that for many people the switch to an e-car would not affect their lifestyle and the related range anxiety diminishes when actually owning an electric vehicle. In addition, we find that choice behavior does not generalize well over different users.

scholarly journals Evaluating On-Road Emissions Impacts of HEVs, PHEVs and EVs: An Integrated Modeling Framework

2018 ◽  
Vol 2 (1) ◽  
Author(s):  
Kejia Hu ◽  
Jianyou Zhao ◽  
Yuche Chen ◽  
L.D. White
Keyword(s):  
Electric Vehicles ◽  
Consumer Choice ◽  
Choice Model ◽  
Government Policies ◽  
Harris County ◽  
Road Transportation ◽  
Modeling Framework ◽  
Transportation Emissions ◽  
Carbon Dioxide Co2

This paper develops a framework to evaluate HEVs, PHEVs and EVs on-road emissions impact, by integrating endogenous vehicle consumer choice model and MOVES-based regional emission transportation model. A case study based on Harris County, Texas data is implemented to examine the on-road emissions under different market penetrations (due to different future energy price) and government policies. The results show different on-road transportation emissions level for Carbon Dioxide (CO2), Carbon Monoxide (CO), Nitrogen Oxide (NOx) and Total Hydrocarbon (THC). In addition, cost effectiveness of reducing on-road emissions by extending tax credit for plug-in electric vehicles (PEV) is calculated and reported. 

scholarly journals An Experimental Economic Study of Loss Aversion in Stock Trading Decisions

2021 ◽  
Vol 9 (4) ◽  
pp. 417-429
Author(s):  
Thanchanok Aramrueng ◽  
Peera Tangtammaruk
Keyword(s):  
Loss Aversion ◽  
Choice Model ◽  
Disposition Effect ◽  
Stock Trading ◽  
Individual Measurement ◽  
Behavioral Bias ◽  
Experimental Economic ◽  
Trading Decisions ◽  
Set Up ◽  
Binary Choice Model

The disposition effect is a form of behavioral bias that tends to result in investors holding on to their losing stocks for too long and selling winning stocks too soon. It can be explained by the behavioral economics theory of loss aversion. Even though many have studied this kind of behavioral bias in a variety of different countries, none of them have investigated the disposition effect in the case of Thailand. Therefore, the main objective of our study is to test the disposition effect among Thais by applying the experimental economic approaches of Weber & Camerer (1998) and Odean (1998) whilst also including the findings from questionnaires and interviews. We set up a simulation stock trading market to test the disposition effect of participants regardless of whether they had stock trading experienced or not. Subjects were required to trade among six stocks in 14 trading periods. We also added three more periods to test how different types of news impacted the subjects’ trading decisions. In addition, we analyzed socioeconomic factors that affect disposition effect behavior by using an econometric binary choice model. We found that this experiment can exhibit the disposition effect of subjects in terms of overall and individual measurement. In normal stock trading situations, we found that over 70% of subjects showed clear signs of the disposition effect, which seemed to decrease after they received fictional news.

scholarly journals Are There Environmental Benefits from Driving Electric Vehicles? The Importance of Local Factors

2016 ◽  
Vol 106 (12) ◽  
pp. 3700-3729 ◽  
Author(s):  
Stephen P. Holland ◽  
Erin T. Mansur ◽  
Nicholas Z. Muller ◽  
Andrew J. Yates
Keyword(s):  
Air Pollution ◽  
Discrete Choice ◽  
Electric Vehicles ◽  
Choice Model ◽  
Environmental Benefits ◽  
Environmental Externalities ◽  
Deadweight Loss ◽  
Local Factors ◽  
Vehicle Purchase ◽  
Air Pollution Model

We combine a theoretical discrete-choice model of vehicle purchases, an econometric analysis of electricity emissions, and the AP2 air pollution model to estimate the geographic variation in the environmental benefits from driving electric vehicles. The second-best electric vehicle purchase subsidy ranges from $2,785 in California to −$4,964 in North Dakota, with a mean of −$1,095. Ninety percent of local environmental externalities from driving electric vehicles in one state are exported to others, implying they may be subsidized locally, even when the environmental benefits are negative overall. Geographically differentiated subsidies can reduce deadweight loss, but only modestly. (JEL D12, D62, H23, L62, Q53, Q54, R11)

scholarly journals Evaluating On-Road Emissions Impacts of HEVs, PHEVs and EVs: An Integrated Modeling Framework

2018 ◽  
Author(s):  
Kejia Hu ◽  
Jianyou Zhao ◽  
Yuche Chen ◽  
L.D. White
Keyword(s):  
Electric Vehicles ◽  
Consumer Choice ◽  
Choice Model ◽  
Government Policies ◽  
Harris County ◽  
Road Transportation ◽  
Modeling Framework ◽  
Transportation Emissions ◽  
Carbon Dioxide Co2

This paper develops a framework to evaluate HEVs, PHEVs and EVs on-road emissions impact, by integrating endogenous vehicle consumer choice model and MOVES-based regional emission transportation model. A case study based on Harris County, Texas data is implemented to examine the on-road emissions under different market penetrations (due to different future energy price) and government policies. The results show different on-road transportation emissions level for Carbon Dioxide (CO2), Carbon Monoxide (CO), Nitrogen Oxide (NOx) and Total Hydrocarbon (THC). In addition, cost effectiveness of reducing on-road emissions by extending tax credit for plug-in electric vehicles (PEV) is calculated and reported. 

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