scholarly journals A DISCRETE CHOICE MODEL FOR FIRM LOCATION DECISION

2016 ◽  
Vol 14 (4) ◽  
Author(s):  
Noordini Che Man ◽  
Harry Timmerman
Keyword(s):  
Discrete Choice ◽  
Choice Model ◽  
Central Business District ◽  
Statistical Technique ◽  
Discrete Choice Models ◽  
Location Decisions ◽  
Firm Location ◽  
Suitability Analysis ◽  
Choice Data ◽  
Business District

Where to locate? It is one of the most important question in locating a business in a city. In the city center, business or firms are functioning as a dominant attractor of employment and also employment locations which linked the land use and transportation system. The objective of this paper is to describe the location model of firms in Kuala Lumpur area. Two important determinants of location choice model in this study are the accessibility measures and the suitability analysis indicators. The model focuses on the statistical technique for analyzing discrete choice data by using econometric and Geographic Information System software. The findings in this paper show that agriculture, mining, electricity, gas and water, transport and finance firms' type are mostly located outside of Kuala Lumpur's Central Business District area. Meanwhile, manufacturing, construction and wholesale firms' type are located in the Central Business District area. The result of this study will highlight the use of discrete choice models in the analysis of firm location decisions which will be a foundation to facilitate town planners and decision makers to understand the firm location decisions in their region.

scholarly journals A DISCRETE CHOICE MODEL FOR FIRM LOCATION DECISION

2016 ◽  
Author(s):  
Noordini Che Man ◽  
Harry Timmerman
Keyword(s):  
Discrete Choice ◽  
Choice Model ◽  
Central Business District ◽  
Statistical Technique ◽  
Discrete Choice Models ◽  
Location Decisions ◽  
Firm Location ◽  
Suitability Analysis ◽  
Choice Data ◽  
Business District

Where to locate? It is one of the most important question in locating a business in a city. In the city center, business or firms are functioning as a dominant attractor of employment and also employment locations which linked the land use and transportation system. The objective of this paper is to describe the location model of firms in Kuala Lumpur area. Two important determinants of location choice model in this study are the accessibility measures and the suitability analysis indicators. The model focuses on the statistical technique for analyzing discrete choice data by using econometric and Geographic Information System software. The findings in this paper show that agriculture, mining, electricity, gas and water, transport and finance firms' type are mostly located outside of Kuala Lumpur's Central Business District area. Meanwhile, manufacturing, construction and wholesale firms' type are located in the Central Business District area. The result of this study will highlight the use of discrete choice models in the analysis of firm location decisions which will be a foundation to facilitate town planners and decision makers to understand the firm location decisions in their region.

Benchmarks for Discrete Choice Models

1994 ◽  
Vol 31 (1) ◽  
pp. 65-75 ◽  
Author(s):  
Manohar U. Kalwani ◽  
Robert J. Meyer ◽  
Donald G. Morrison
Keyword(s):  
Discrete Choice ◽  
Consumer Choice ◽  
Repeated Measures ◽  
Choice Model ◽  
Simulated Data ◽  
Brand Choice ◽  
Choice Models ◽  
Discrete Choice Models ◽  
Choice Data ◽  
Choice Probabilities

In assessing the performance of a choice model, we have to answer the question, “Compared with what?” Analyses of consumer brand choice data historically have measured fit by comparing a model's performance with that of a naive model that assumes a household's choice probability on each occasion equals the aggregate market share of each brand. The authors suggest that this benchmark could form an overly naive point of reference in assessing the fit of a choice model calibrated on scanner-panel data, or any repeated-measures analysis of choice. They propose that fairer benchmarks for discrete choice models in marketing should incorporate heterogeneity in consumer choice probabilities, evidence for which is by now well documented in the marketing literature. They use simulated data to compare the performance of parametric and nonparametric benchmark models, which allow for heterogeneity in consumer choice probabilities, with the performance of the aggregate share-based benchmark model, which assumes consumers are homogeneous in their choice probabilities. They also assess the performance of two previously published consumer behavior models against the proposed fairer benchmark models that allow for heterogeneity in consumer choice probabilities. They find that one provides a significantly better fit than their more conservative benchmark models and the other performs less favorably.

scholarly journals Mode choice analysis using discrete choice model from transport user (Case study: Jakarta LRT, Indonesia)

2018 ◽  
Vol 181 ◽  
pp. 03001
Author(s):  
Dwi Novi Wulansari ◽  
Milla Dwi Astari
Keyword(s):  
Discrete Choice ◽  
Public Transportation ◽  
Choice Model ◽  
Stated Preference ◽  
Mode Choice ◽  
Choice Models ◽  
Discrete Choice Models ◽  
Light Rail ◽  
Choice Analysis ◽  
Mode Choice Model

Jakarta Light Rail Transit (Jakarta LRT) has been planned to be built as one of mass rail-based public transportation system in DKI Jakarta. The objective of this paper is to obtain a mode choice models that can explain the probability of choosing Jakarta LRT, and to estimate the sensitivity of mode choice if the attribute changes. Analysis of the research conducted by using discrete choice models approach to the behavior of individuals. Choice modes were observed between 1) Jakarta LRT and TransJakarta Bus, 2) Jakarta LRT and KRL-Commuter Jabodetabek. Mode choice model used is the Binomial Logit Model. The research data obtained through Stated Preference (SP) techniques. The model using the attribute influences such as tariff, travel time, headway and walking time. The models obtained are reliable and validated. Based on the results of the analysis shows that the most sensitive attributes affect the mode choice model is the tariff.

scholarly journals Measuring hospital spatial wingspan by using a discrete choice model with utility-threshold

2018 ◽  
Author(s):  
Saley Issa ◽  
Ribatet Mathieu ◽  
Molinari Nicolas
Keyword(s):  
Monte Carlo ◽  
Discrete Choice ◽  
Choice Model ◽  
Discrete Choice Models ◽  
Mcmc Methods ◽  
Hospital Competition ◽  
Policy Makers ◽  
New Approach ◽  
Asthma Patients ◽  
The One

AbstractPolicy makers increasingly rely on hospital competition to incentivize patients to choose high-value care. Travel distance is one of the most important drivers of patients’ decision. The paper presents a method to numerically measure, for a given hospital, the distance beyond which no patient is expected to choose the hospital for treatment by using a new approach in discrete choice models. To illustrate, we compared 3 hospitals attractiveness related to this distance for asthma patients admissions in 2009 in Hérault (France), showing, as expected, CHU Montpellier is the one with the most important spatial wingspan. For estimation, Monte Carlo Markov Chain (MCMC) methods are used.

scholarly journals Discrete Choice Data with Unobserved Heterogeneity: A Conditional Binary Quantile Model

2019 ◽  
Vol 28 (2) ◽  
pp. 147-167
Author(s):  
Xiao Lu
Keyword(s):  
Discrete Choice ◽  
Unobserved Heterogeneity ◽  
Discrete Choice Models ◽  
Choice Data ◽  
Science Data ◽  
Explanatory Variables ◽  
Conditional Mean ◽  
Heterogeneous Effects ◽  
Discrete Response ◽  
Legislative Proposals

In political science, data with heterogeneous units are used in many studies, such as those involving legislative proposals in different policy areas, electoral choices by different types of voters, and government formation in varying party systems. To disentangle decision-making mechanisms by units, traditional discrete choice models focus exclusively on the conditional mean and ignore the heterogeneous effects within a population. This paper proposes a conditional binary quantile model that goes beyond this limitation to analyze discrete response data with varying alternative-specific features. This model offers an in-depth understanding of the relationship between the explanatory and response variables. Compared to conditional mean-based models, the conditional binary quantile model relies on weak distributional assumptions and is more robust to distributional misspecification. The model also relaxes the assumption of the independence of irrelevant alternatives, which is often violated in practice. The method is applied to a range of political studies to show the heterogeneous effects of explanatory variables across the conditional distribution. Substantive interpretations from counterfactual scenarios are used to illustrate how the conditional binary quantile model captures unobserved heterogeneity, which extant models fail to do. The results point to the risk of averaging out the heterogeneous effects across units by conditional mean-based models.

Pricing Competition Under Specific Discrete Choice Models

2020 ◽  
Vol 37 (02) ◽  
pp. 2050008
Author(s):  
Farhad Etebari
Keyword(s):  
Discrete Choice ◽  
Logit Model ◽  
Choice Model ◽  
Public Information ◽  
Multinomial Logit Model ◽  
Multinomial Logit ◽  
Discrete Choice Models ◽  
Nested Logit ◽  
Nested Logit Model ◽  
Substitution Pattern

Recent developments of information technology have increased market’s competitive pressure and products’ prices turned to be paramount factor for customers’ choices. These challenges influence traditional revenue management models and force them to shift from quantity-based to price-based techniques and incorporate individuals’ decisions within optimization models during pricing process. Multinomial logit model is the simplest and most popular discrete choice model, which suffers from an independence of irrelevant alternatives limitation. Empirical results demonstrate inadequacy of this model for capturing choice probability in the itinerary share models. The nested logit model, which appeared a few years after the multinomial logit, incorporates more realistic substitution pattern by relaxing this limitation. In this paper, a model of game theory is developed for two firms which customers choose according to the nested logit model. It is assumed that the real-time inventory levels of all firms are public information and the existence of Nash equilibrium is demonstrated. The firms adapt their prices by market conditions in this competition. The numerical experiments indicate decreasing firm’s price level simultaneously with increasing correlation among alternatives’ utilities error terms in the nests.

scholarly journals Making Way for the Car: Minimum Parking Requirements and Porirua City Centre

2021 ◽  
Author(s):  
◽  
Angus Hulme-Moir
Keyword(s):  
Land Use ◽  
Central Business District ◽  
Optimal Level ◽  
City Centre ◽  
Choice Data ◽  
Land Use Patterns ◽  
Use Patterns ◽  
Development Costs ◽  
Travel Decisions ◽  
Business District

<p>Minimum parking requirements (MPRs) mandate that each new development provides enough parking to ensure ample provision at the time of peak demand. This approach tends to oversupply parking above the optimal level, and by bundling parking into the development costs, ensures that parking is free to the user. As a result, land-use and transport decisions are distorted. A case study of Porirua central business district (CBD) was undertaken to investigate the use of MPRs in the New Zealand context, and to assess their impacts on transport and land-use patterns. Findings indicate that MPRs tend to oversupply parking relative to weekly mean and peak occupancies. Land use mapping found that 24 percent of CBD land is allocated to car parking and MPRs were shown to contribute to dispersed development patterns. Stated choice data and a cost recovery model for car parking highlight how free and ample car parking provision favours car driving and has distortionary impacts on travel decisions.</p>

Land value as a function of distance from the CBD: The case of the eastern suburbs of Pretoria

2004 ◽  
Vol 7 (3) ◽  
pp. 532-541 ◽  
Author(s):  
AC Jordaan ◽  
BE Drost ◽  
MA Makgata
Keyword(s):  
Poverty Reduction ◽  
Central Business District ◽  
Sub Saharan Africa ◽  
Land Values ◽  
Location Decisions ◽  
Paper Review ◽  
Cross Country ◽  
Sub Saharan ◽  
Business District ◽  
Prospective User

The greater the benefit derived from using a piece of land for any particular purpose the higher the price the prospective user is willing to pay.  The demand for land is thus a reflection of the utility derived from its use by current or potential users.  The ability to compete for sites depends on whether they have the means to benefit from accessibility and complementarity within the urban framework. Conventional theory states that productivity determines urban rent, which is the highest at the place of maximum accessibility, i.e. the central business district (CBD). This paper review selected residential location theories and the factors influencing location decisions. Using selected eastern suburbs of Pretoria, the paper tries to determine whether residential land values decrease as distance from the CBD increase as theory suggests.Foreign aid and poverty reduction in sub-Saharan Africa: A cross-country investigation

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