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A joint model for the perfect and imperfect substitute goods case: Application to activity time-use decisions

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  • Bhat, Chandra R.
  • Srinivasan, Sivaramakrishnan
  • Sen, Sudeshna

Abstract

This paper formulates a model for the joint analysis of the imperfect and perfect substitute goods case. That is, it enables the modeling of choice situations where consumers choose multiple alternatives at the same time from a certain set of alternatives, but also choose only one alternative from among a subset of alternatives. For example, in the context of time-use in leisure activity, individuals may participate in combinations of social, out-of-home recreation, and out-of-home non-maintenance shopping pursuits. These three activity types are imperfect substitutes in that they serve different functional needs of individuals and households. However, if an individual participates in out-of-home recreation, s/he may participate in only one of physically passive activities (for example, going to the movies), partially physically active activities (going to the beach or participating in spectator sports), or physically active activities (for example, working out at a gym) during a given time period (such as a weekday or a weekend day). To our knowledge, this paper is the first to consider a unified utility-maximizing framework for the analysis of such a joint imperfect-perfect substitute goods case in the economic literature. The model formulated in the paper is applied to the time-use decisions of individuals. Specifically, individual time-use in maintenance and leisure activities are modeled as a function of demographic variables, urban environment attributes, and day of week/season effects. The results from the model can be used to examine time-use choices across different segments of the population (for example, male vs. female, young vs. old, etc.), as well as to assess the potential impact of urban form policies on individual time-use decisions.

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  • Bhat, Chandra R. & Srinivasan, Sivaramakrishnan & Sen, Sudeshna, 2006. "A joint model for the perfect and imperfect substitute goods case: Application to activity time-use decisions," Transportation Research Part B: Methodological, Elsevier, vol. 40(10), pages 827-850, December.
    • Handle: RePEc:eee:transb:v:40:y:2006:i:10:p:827-850
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    5. Pinjari, Abdul Rawoof & Bhat, Chandra R. & Hensher, David A., 2009. "Residential self-selection effects in an activity time-use behavior model," Transportation Research Part B: Methodological, Elsevier, vol. 43(7), pages 729-748, August.
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    7. Rodrigo J. Tapia & Gerard Jong & Ana M. Larranaga & Helena B. Bettella Cybis, 2021. "Exploring Multiple‐discreteness in Freight Transport. A Multiple Discrete Extreme Value Model Application for Grain Consolidators in Argentina," Networks and Spatial Economics, Springer, vol. 21(3), pages 581-608, September.
    8. Acharya, Bikram & Adhikari, Santosh, 2021. "Household energy consumption and adaptation behavior during crisis: Evidence from Indian economic blockade on Nepal," Energy Policy, Elsevier, vol. 148(PB).
    9. Calastri, Chiara & Hess, Stephane & Daly, Andrew & Carrasco, Juan Antonio, 2017. "Does the social context help with understanding and predicting the choice of activity type and duration? An application of the Multiple Discrete-Continuous Nested Extreme Value model to activity diary," Transportation Research Part A: Policy and Practice, Elsevier, vol. 104(C), pages 1-20.
    10. Kaplan, Sigal & Shiftan, Yoram & Bekhor, Shlomo, 2012. "Development and estimation of a semi-compensatory model with a flexible error structure," Transportation Research Part B: Methodological, Elsevier, vol. 46(2), pages 291-304.
    11. Bhat, Chandra R. & Sen, Sudeshna & Eluru, Naveen, 2009. "The impact of demographics, built environment attributes, vehicle characteristics, and gasoline prices on household vehicle holdings and use," Transportation Research Part B: Methodological, Elsevier, vol. 43(1), pages 1-18, January.
    12. Rachel Copperman & Chandra Bhat, 2007. "An analysis of the determinants of children’s weekend physical activity participation," Transportation, Springer, vol. 34(1), pages 67-87, January.
    13. Palma, David & Calastri, Chiara & Pawlak, Jacek, 2023. "The role of time budgets in models of multi-tasking while travelling: A comparison between the MDCEV and eMDC approach," Transportation Research Part A: Policy and Practice, Elsevier, vol. 176(C).
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    15. Frontuto, Vito, 2019. "Forecasting household consumption of fuels: A multiple discrete-continuous approach," Applied Energy, Elsevier, vol. 240(C), pages 205-214.
    16. Chandra Bhat & Konstadinos Goulias & Ram Pendyala & Rajesh Paleti & Raghuprasad Sidharthan & Laura Schmitt & Hsi-Hwa Hu, 2013. "A household-level activity pattern generation model with an application for Southern California," Transportation, Springer, vol. 40(5), pages 1063-1086, September.
    17. Alexa Delbosc & Maarten Kroesen & Bert Wee & Mathijs Haas, 2020. "Linear, non-linear, bi-directional? Testing the nature of the relationship between mobility and satisfaction with life," Transportation, Springer, vol. 47(4), pages 2049-2066, August.
    18. Bhat, Chandra R. & Sener, Ipek N. & Eluru, Naveen, 2010. "A flexible spatially dependent discrete choice model: Formulation and application to teenagers' weekday recreational activity participation," Transportation Research Part B: Methodological, Elsevier, vol. 44(8-9), pages 903-921, September.
    19. Lai, Xinjun & Lam, William H.K. & Su, Junbiao & Fu, Hui, 2019. "Modelling intra-household interactions in time-use and activity patterns of retired and dual-earner couples," Transportation Research Part A: Policy and Practice, Elsevier, vol. 126(C), pages 172-194.
    20. Hanemann, Michael & Labandeira, Xavier & Labeaga, José M. & Vásquez-Lavín, Felipe, 2024. "Discrete-continuous models of residential energy demand: A comprehensive review," Resource and Energy Economics, Elsevier, vol. 77(C).
    21. Gulsah Akar & Kelly Clifton & Sean Doherty, 2011. "Discretionary activity location choice: in-home or out-of-home?," Transportation, Springer, vol. 38(1), pages 101-122, January.
    22. Bhat, Chandra R., 2008. "The multiple discrete-continuous extreme value (MDCEV) model: Role of utility function parameters, identification considerations, and model extensions," Transportation Research Part B: Methodological, Elsevier, vol. 42(3), pages 274-303, March.
    23. Ipek Sener & Chandra Bhat, 2007. "An analysis of the social context of children’s weekend discretionary activity participation," Transportation, Springer, vol. 34(6), pages 697-721, November.

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