A New Model of Random Regret Minimization
By Caspar G. Chorus. European Journal of Transport and Infrastructure Research, 2010
317 citations recorded by the source corpus.
A new choice model is derived, rooted in the framework of Random Regret Minimization (RRM). The proposed model postulates that when choosing, people anticipate and aim to minimize regret. Whereas previous regret-based discrete choice-models assume that regret is experienced with respect to only the best of foregone alternatives, the proposed model assumes that regret is potentially experienced with respect to each foregone alternative that performs well. In contrast with earlier regret-based discrete-choice approaches, this model can be estimated using readily available discrete-choice software packages. The proposed model is contrasted theoretically and empirically with its natural counterpart, Random Utility Maximization’s linearadditive MNL-model. Empirical comparisons on four revealed and stated travel choice datasets show a promising performance of the RRM-model.
Subfields: Economics and Econometrics, General Decision Sciences, Transportation
View Paper: https://www.semanticscholar.org/paper/a8ea277aef40e6201f2f79495647da40166cff5c
How researchers see this paper
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In Economics and Econometrics
- William H. Greene
- David A. Hensher
- Stephane Hess
- Bert van Wee
- Naveen Eluru
- Sabreena Anowar
- Caspar G. Chorus
- Nowreen Keya
In General Decision Sciences
- David A. Hensher
- William H. Greene
- Bert van Wee
- Stephane Hess
- Caspar G. Chorus
- Sabreena Anowar
- Naveen Eluru
- Nowreen Keya
In Transportation
- William H. Greene
- David A. Hensher
- Sabreena Anowar
- Naveen Eluru
- Nowreen Keya
- Stephane Hess
- Eric Molin
- Bert van Wee
Citations in the corpus
- Activity-based models of travel demand: promises, progress and prospects (2014, unknown): “…risk-seeking vs. risk-avoiding behaviour, such as prospect and regret theory, have been explored recently in travel behaviour research (e.g. Chorus, 2010; Chorus, Arentze, & Timmermans, 2008, 2009; Chorus, Molin, Van Wee, Arentze, & Timmermans, 2006; Jou & Kitamura, 2002; Schwanen &…”
- Regret theory-based route choices and traffic equilibria (2012, methodology): “Although the notion of regret has been used in the context of travel-choice modelling before by the author and coworkers (Chorus et al. 2006a, b, 2008, 2009a, Chorus 2010), these studies do not adopt the RT-framework.”
- Joint model of freight mode choice and shipment size: A copula-based random regret minimization framework (2019, methodology): “In the RRM based approach, the shipping time and shipping cost of both the chosen alternative and the competitor alternatives enter into the VOT equation.”
- Random regret minimization or random utility maximization: An exploratory analysis in the context of automobile fuel choice (2013, methodology): “2 Note that, as has been formally shown in Chorus (2010), the two models (RRM and RUM) give identical results when choice sets are binary.”
- Random Regret Minimization: An Overview of Model Properties and Empirical Evidence (2012, methodology): “An important implication of this property which is highlighted in Chorus (2010) is that the RRM model predicts that alternatives with an “in-between” Random Regret Minimization 81”
- Consumer preferences for electric vehicles: a literature review (2017, methodology): “…which uncertainty influences decisions and quantifies its impact by explicitly incorporating it into a choice experiment, and to use different choice models such as regret models (Chorus, 2010) which may be more suitable for decision-making under uncertainty than random utility maximisation models.”