Print Email Facebook Twitter A new model of Random Regret Minimization Title A new model of Random Regret Minimization Author Chorus, C.G. Faculty Technology, Policy and Management Department Infrastructures, Systems and Services Date 2010-05-25 Abstract 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. Using formal derivations and numerical examples, the proposed model is contrasted with Random Utility Maximization’s linear-additive MNL-model. It is illustrated how the new RRM-model provides an intuitive and parsimonious means to capture so-called compromise effects, which have received much attention lately in fields outside transportation. Empirical comparisons between the two models on four revealed and stated travel choice datasets show a promising performance of the RRM-model. Subject discrete choice analysisrandom regret minimizationsemi-compensatory choicechoice set-specific preferences To reference this document use: http://resolver.tudelft.nl/uuid:875158d0-dd28-47f8-875b-cd069b13b511 ISSN 1547-7141 Source EJTIR, 10 (2), 2010 Part of collection Institutional Repository Document type journal article Rights (c) 2010 Chorus, C.G. Files PDF Chorus 2010.pdf 227.17 KB Close viewer /islandora/object/uuid:875158d0-dd28-47f8-875b-cd069b13b511/datastream/OBJ/view