The Annual Conference of the Regional Science Association International

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The Annual Conference of the Regional Science
Association International
Ben-Gurion University of the Negev, 15 April
2008
Semi-Compensatory Model for Rental Apartment
Choice
Sigal Kaplan, Shlomo Bekhor, Yoram Shiftan
The Faculty of Civil and Environmental
Engineering, Technion
Photo Tour-Haifa
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Contents
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Introduction
2
Methodology and survey design
3
Screening results
4
Semi-compensatory model estimation
5
Conclusions
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Introduction
4
Introduction
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Methodology
Universal set
Search criteria update
Elimination
Reduced Choice set
Null set
Utility maximization
Chosen alternative
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Methodology
G - universal choice set
q individual decision maker
Manski (1977)
Selection probability of choice set S
Selection probability of alternative i from set S
Selection probability of screening criteria
threshold combination
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Survey design
Stated preference survey Rental apartment choice
of students
Personal information Zone rating Attitudinal
survey
User information
Database
7 categorical screening criteria
No results or over 100 results
Apartment inventory 600 apartments
Check
lt 100 results
User choice
Apartment choice
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Survey design
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Survey design
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Screening results
The survey yielded 1049 valid responses
Only 14.4 screened by less than four criteria
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Screening results
Frequency of screening by each of the 7 criteria
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Screening results
Roommates
Average max. price 416.8
Price
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Semi-compensatory model estimation
Maximum price m1,.M categories. M10
250,300,350,700
Apartment type t1,.T categories. T2 vacant /
with roommates
Ordered Probit model for Maximal price
Binary Probit model for apartment type (vacant /
with roommates)
MNL
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Semi compensatory model estimation
Binary Probit model for apartment type
Dependent variable 1 vacant apartment 0
with roommates
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Semi compensatory model estimation
Ordered Probit for maximal price
LR -2(-2164.445-(-1976.179))376.53 gtgt
?2(0.05,5)11.07
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Semi compensatory model estimation
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Conclusions
A synthetic screening and choice experiment is
adequate for tracing real choice processes
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The survey proves the importance of the screening
stage for rental apartment choice
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The screening criteria depend on individual
characteristics
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The selection of the price criteria is related to
quality minimal requirement apartment type
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The semi-compensatory model has an advantage in
comparison with the MNL
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Thank you
Photo Tour-Haifa