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Understanding the decision-making process of choice modellers

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  • Gabriel Nova
  • Sander van Cranenburgh
  • Stephane Hess

Abstract

Discrete Choice Modelling serves as a robust framework for modelling human choice behaviour across various disciplines. Building a choice model is a semi structured research process that involves a combination of a priori assumptions, behavioural theories, and statistical methods. This complex set of decisions, coupled with diverse workflows, can lead to substantial variability in model outcomes. To better understand these dynamics, we developed the Serious Choice Modelling Game, which simulates the real world modelling process and tracks modellers' decisions in real time using a stated preference dataset. Participants were asked to develop choice models to estimate Willingness to Pay values to inform policymakers about strategies for reducing noise pollution. The game recorded actions across multiple phases, including descriptive analysis, model specification, and outcome interpretation, allowing us to analyse both individual decisions and differences in modelling approaches. While our findings reveal a strong preference for using data visualisation tools in descriptive analysis, it also identifies gaps in missing values handling before model specification. We also found significant variation in the modelling approach, even when modellers were working with the same choice dataset. Despite the availability of more complex models, simpler models such as Multinomial Logit were often preferred, suggesting that modellers tend to avoid complexity when time and resources are limited. Participants who engaged in more comprehensive data exploration and iterative model comparison tended to achieve better model fit and parsimony, which demonstrate that the methodological choices made throughout the workflow have significant implications, particularly when modelling outcomes are used for policy formulation.

Suggested Citation

  • Gabriel Nova & Sander van Cranenburgh & Stephane Hess, 2024. "Understanding the decision-making process of choice modellers," Papers 2411.01704, arXiv.org.
  • Handle: RePEc:arx:papers:2411.01704
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    References listed on IDEAS

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    3. Parady, Giancarlos & Ory, David & Walker, Joan, 2021. "The overreliance on statistical goodness-of-fit and under-reliance on model validation in discrete choice models: A review of validation practices in the transportation academic literature," Journal of choice modelling, Elsevier, vol. 38(C).
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