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Please use this identifier to cite or link to this item: https://dspace.lboro.ac.uk/2134/25154

Title: Risky weighting in discrete choice
Authors: Li, Baibing
Hensher, David A.
Keywords: Cumulative prospect theory
Discrete choice analysis
Risk perception
Road tolling
Travel time
Issue Date: 2017
Publisher: © Elsevier
Citation: LI, B. and HENSHER, D.A., 2017. Risky weighting in discrete choice. Transportation Research Part B: Methodological, 102, pp. 1-21.
Abstract: This paper presents a new approach to discrete choice analysis for risky prospects. Conventional discrete choice analysis focuses on riskless prospects and does not deal with the scenario where the alternatives that the decision-makers choose from are associated with risk. In this paper, we investigate decision-makers’ risk perception and choice behaviour in choice experiments when they are facing several risky prospects. We propose a broad class of cumulative risky weighting functions, upon which a unified cumulative risky weighting function is developed. We show that this unified cumulative risky weighting function includes several existing cumulative risky weighting functions as special cases. We then develop a multivariate method for choice analysis with risky prospects to account for decision-makers’ individual-specific risk perception and the impact of various factors on the value function respectively. We illustrate the developed method using an empirical study on road tolling in Australia.
Description: This paper is in closed until 16th Nov 2018.
Version: Accepted for publication
DOI: 10.1016/j.trb.2017.04.014
URI: https://dspace.lboro.ac.uk/2134/25154
Publisher Link: https://doi.org/10.1016/j.trb.2017.04.014
ISSN: 1879-2367
Appears in Collections:Closed Access (Business School)

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