TY - JOUR

T1 - Multivariate discrete choice with rational inattention

T2 - Model development, application, and calibration

AU - Chen, X.

AU - Jiang, G.

AU - Jiang, Y.

N1 - Export Date: 18 December 2024 Correspondence Address: Jiang, G.; School of Intelligent Systems Engineering, China; email: jianggg@mail.sysu.edu.cn Funding details: Fundamental Research Funds for the Central Universities Funding details: Civil Aviation University of China, CAUC, 3122024QD05 Funding details: Civil Aviation University of China, CAUC Funding details: National Natural Science Foundation of China, NSFC, 71971038, 72201285, 52272308 Funding details: National Natural Science Foundation of China, NSFC Funding details: Sun Yat-sen University, SYSU, 22qntd1701 Funding details: Sun Yat-sen University, SYSU Funding details: Basic and Applied Basic Research Foundation of Guangdong Province, 2024A1515012422 Funding details: Basic and Applied Basic Research Foundation of Guangdong Province Funding text 1: This research was supported by National Natural Science Foundation of China [72201285, 52272308, 71971038], Fundamental Research Funds for Central Universities, Civil Aviation University of China [3122024QD05] and the Guangdong Basic and Applied Basic Research Foundation [2024A1515012422]. Funding text 2: This research was supported by Fundamental Research Funds for the Central Universities , Civil Aviation University of China [ 3122024QD05 ], Grants from the National Natural Science Foundation of China [ 72201285 ], [ 52272308 ], and the Fundamental Research Funds for the Central Universities, Sun Yat-sen University [ 22qntd1701 ].

PY - 2025/2/28

Y1 - 2025/2/28

N2 - The recent application of the rational inattention (RI) theory in transportation has shed light on a promising alternative way of understanding how information influences the travel choices of passengers. However, existing RI literature has not yet addressed the discrete choice problem with multiple variates. Thus, this study develops a multivariate rational inattention (MRI) discrete choice model. This assumes that acquiring information is costly and the unit information cost varies among variates, so decision-makers rationally choose the amount of information to acquire for each variate. We demonstrate that the MRI discrete choice model results in a probabilistic formulation similar to the logit model, but with the superiority of integrating unit information costs and the prior knowledge of decision-makers. Furthermore, we apply the MRI discrete choice model to the metro route choice problem and calibrate the model based on the revealed preference (RP) data collected from the Chengdu metro. It is found that the proposed model has satisfactory accuracy with better interpretability than the logit model and univariate rational inattention discrete choice model.

AB - The recent application of the rational inattention (RI) theory in transportation has shed light on a promising alternative way of understanding how information influences the travel choices of passengers. However, existing RI literature has not yet addressed the discrete choice problem with multiple variates. Thus, this study develops a multivariate rational inattention (MRI) discrete choice model. This assumes that acquiring information is costly and the unit information cost varies among variates, so decision-makers rationally choose the amount of information to acquire for each variate. We demonstrate that the MRI discrete choice model results in a probabilistic formulation similar to the logit model, but with the superiority of integrating unit information costs and the prior knowledge of decision-makers. Furthermore, we apply the MRI discrete choice model to the metro route choice problem and calibrate the model based on the revealed preference (RP) data collected from the Chengdu metro. It is found that the proposed model has satisfactory accuracy with better interpretability than the logit model and univariate rational inattention discrete choice model.

KW - Model Calibration

KW - Multivariate Discrete Choice

KW - Rational Inattention

KW - Route Choice

KW - Decision makers

KW - Discrete choice

KW - Discrete choice models

KW - Information costs

KW - Logit models

KW - Model application

KW - Model calibration

KW - Multivariate discrete choice

KW - Rational inattention

KW - Route choice

U2 - 10.1016/j.tre.2024.103899

DO - 10.1016/j.tre.2024.103899

M3 - Journal article

VL - 194

JO - Transportation Research Part E: Logistics and Transportation Review

JF - Transportation Research Part E: Logistics and Transportation Review

SN - 1366-5545

M1 - 103899

ER -