A recursive logit model with choice aversion and its application to transportation networks

Transportation Research Part B

49 Pages Posted: 19 Oct 2020 Last revised: 25 Oct 2021

See all articles by Austin Knies

Austin Knies

Indiana University Bloomington

Jorge Lorca

Central Bank of Chile

Emerson Melo

Indiana University Bloomington

Date Written: August 17, 2021

Abstract

We propose a recursive logit model which captures the notion of choice aversion by imposing a penalty term that accounts for the dimension of the choice set at each node of the transportation network. We make three contributions. First, we show that our model overcomes the correlation problem between routes, a common pitfall of traditional logit models, and that the choice aversion model can be seen as an alternative to these models. Second, we show how our model can generate violations of regularity in the path choice probabilities. In particular, we show that removing edges in the network may decrease the probability for existing paths. Finally, we show that under the presence of choice aversion, adding edges to the network can make users worse off. In other words, a type of Braess's paradox can emerge outside of congestion and can be characterized in terms of a parameter that measures users' degree of choice aversion. We validate these contributions by estimating this parameter over GPS traffic data captured on a real-world transportation network.

Keywords: choice aversion, recursive logit, IIA, directed networks, transportation networks

JEL Classification: D001, C00, C51, C61

Suggested Citation

Knies, Austin and Lorca, Jorge and Melo, Emerson, A recursive logit model with choice aversion and its application to transportation networks (August 17, 2021). Transportation Research Part B, Available at SSRN: https://ssrn.com/abstract=3705750 or http://dx.doi.org/10.2139/ssrn.3705750

Austin Knies

Indiana University Bloomington ( email )

Dept of Biology
100 South Indiana Ave.
Bloomington, IN 47405
United States

Jorge Lorca

Central Bank of Chile ( email )

Agustinas 1180
Santiago, RM 8340454
Chile

Emerson Melo (Contact Author)

Indiana University Bloomington ( email )

Dept of Economics
100 South Indiana Ave.
Bloomington, IN 47405
United States

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