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FEB Research Report KBI_1303

Publication date: 2013-02-01
Publisher: KU Leuven - Faculty of Economics and Business; Leuven (Belgium)

Author:

Crabbe, Marjolein
Akinc, Deniz ; Vandebroek, Martina

Keywords:

Discrete choice, Mixed logit, Individualized design, D-efficiency, Kullback-Leibler information

Abstract:

The mixed logit choice model has become the common standard to analyze transport behavior. Efficient design of the corresponding choice experiments is therefore indispensable to obtain precise knowledge of travelers’ preferences. Accounting for the individual-specific coefficients in the model, this research advocates an individualized design approach. Individualized designs are sequentially generated for each person separately, using the answers from previous choice sets to select the next best set in a survey. In this way they are adapted to the specific preferences of an individual and therefore more efficient than an aggregate design approach. In order for individual sequential designs to be practicable, the speed of designing an additional choice set in an experiment is obviously a key issue. This paper introduces three design criteria used in optimal test design, based on Kullback-Leibler information, and compares them with the well-known D-efficiency criterion to obtain individually adapted choice designs for the mixed logit choice model. Being equally efficient to D-efficiency and at the same time much faster, the Kullback-Leibler criteria are well suited for the design of individualized choice experiments.