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Transition choice probabilities and welfare analysis in random utility models with imperfect before–after correlation

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  • Delle Site, Paolo
  • Salucci, Marco Valerio

Abstract

Welfare in random utility models is used to be analysed on the basis of only the expectation of the compensating variation. De Palma and Kilani (De Palma, A., Kilani, K., 2011. Transition choice probabilities and welfare analysis in additive random utility models. Economic Theory 46(3), 427–454) have developed a framework for conditional welfare analysis which provides analytic expressions of transition choice probabilities and associated welfare measures. The contribution is of practical relevance in transportation because it allows to compute shares of shifters and non-shifters and attribute benefits to them in a rigorous way. In De Palma and Kilani (2011) the usual assumption of unchanged random terms before and after is made.

Suggested Citation

  • Delle Site, Paolo & Salucci, Marco Valerio, 2013. "Transition choice probabilities and welfare analysis in random utility models with imperfect before–after correlation," Transportation Research Part B: Methodological, Elsevier, vol. 58(C), pages 215-242.
    • Handle: RePEc:eee:transb:v:58:y:2013:i:c:p:215-242
    DOI: 10.1016/j.trb.2013.09.003
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    Cited by:

    1. Jérôme Massiani, 2023. "Economic Expertise and Large Infrastructures Projects: The 2019 Cost Benefit Analysis of the Lyon Turin Project [Expertise économique et grandes infrastructures : l’analyse coûts- avantages du Lyon," Post-Print hal-04159527, HAL.
    2. Paolo Delle Site & André de Palma & Karim Kilani, 2021. "Consumers’ welfare and compensating variation: survey and mode choice application," THEMA Working Papers 2021-11, THEMA (THéorie Economique, Modélisation et Applications), Université de Cergy-Pontoise.
    3. Bart Capéau & Liebrecht De Sadeleer & Sebastiaan Maes & André Decoster, 2020. "Nonparametric welfare analysis for discrete choice: levels and differences of individual and social welfare," Working Papers of Department of Economics, Leuven 674666, KU Leuven, Faculty of Economics and Business (FEB), Department of Economics, Leuven.
    4. Paolo Delle Site, 2017. "On the Equivalence Between SUE and Fixed-Point States of Day-to-Day Assignment Processes with Serially-Correlated Route Choice," Networks and Spatial Economics, Springer, vol. 17(3), pages 935-962, September.
    5. Massiani, Jérôme & Maltese, Ila, 2022. "Thirty years of socio-economic evaluation of the Lyon–Turin High–Speed rail project," Research in Transportation Economics, Elsevier, vol. 94(C).
    6. Huijun Sun & Si Zhang & Linghui Han & Xiaomei Zhao & Lu Lou, 2020. "Day-to-Day Evolution Model Based on Dynamic Reference Point with Heterogeneous Travelers," Networks and Spatial Economics, Springer, vol. 20(4), pages 935-961, December.
    7. Delle Site, Paolo & Salucci, Marco Valerio, 2015. "Transition choice probabilities in logit," Economics Letters, Elsevier, vol. 126(C), pages 135-139.

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