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Development and estimation of flexible semicompensatory choice models: An application to residential choice,Used
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Semicompensatory models show promise in representing twostage choice processes by integrating choice set formation within discrete choice models. However, they are subject to simplifying assumptions that limit their application. The current study proposes a novel semi compensatory model that alleviates these simplifying assumptions concerning (i) the number of alternatives, (ii) the representation of choice set formation, and (iii) the error structure. The proposed model represents a sequence of choice set formation based on the conjunctive heuristic with correlated thresholds, and utilitybased choice accommodating alternatively nested substitution patterns across the alternatives and random taste variation across the population. The model is accompanied by an innovative twostage procedure to collect data about semicompensatory choice processes in a digital economy environment. The proposed model is applied to offcampus rental apartment choice of students in a university city in the core of mediumsize metropolitan area.
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