RP/SP Estimation Including Reference Dependent Preferences
M Fosgerau, S Mabit, DTU Transport, DK
This paper integrates reference-dependent preferences into joint modelling of both revealed and stated choice data. We applied our model to revealed choices among new vehicles and stated choices among conventional, hybrid, biodiesel and electric vehicles. The hypothesis of reference dependence in the price attribute was supported by our data. For other attributes reference dependence was insignificant. The final model showed that individuals were loss averse. The inclusion of reference dependence did change estimates of the fuel specific constanst significantly. An illustration showed that even though individuals were loss averse it did not affect calculations of overall market shares.
Association for European Transport