Print Email Facebook Twitter Random regret minimization: Exploration of a new choice model for environmental and resource economics Title Random regret minimization: Exploration of a new choice model for environmental and resource economics Author Thiene, M. Boeri, M. Chorus, C.G. Faculty Technology, Policy and Management Department Infrastructures, Systems and Services Date 2011-09-08 Abstract This paper introduces the discrete choice model-paradigm of Random Regret Minimization (RRM) to the field of environmental and resource economics. The RRM-approach has been very recently developed in the context of travel demand modelling and presents a tractable, regret-based alternative to the dominant choice-modelling paradigm based on Random Utility Maximization-theory (RUM-theory). We highlight how RRM-basedmodels provide closed form, logit-type formulations for choice probabilities that allow for capturing semi-compensatory behaviour and choice set-composition effects while being equally parsimonious as their utilitarian counterparts. Using data from a Stated Choice experiment aimed at identifying valuations of characteristics of nature parks, we compare RRM-based models and RUM-based models in terms of parameter estimates, goodness of fit, elasticities and consequential policy implications. Subject random regret minimizationrandom utility maximizationdiscrete choice modellingoutdoor recreationenvironmental policy To reference this document use: http://resolver.tudelft.nl/uuid:b7a7f7cb-791a-45f2-998a-4b46ddfa2e15 DOI https://doi.org/10.1007/s10640-011-9505-7 Publisher Springer ISSN 0924-6460 Source http://www.springerlink.com/content/h31073w2058258w1/ Source Environmental and Resource Economics, 51 (3), 2012 Part of collection Institutional Repository Document type journal article Rights (c) 2011 Springer Science+Business Media B.V. Files PDF thiene.pdf 273.89 KB Close viewer /islandora/object/uuid:b7a7f7cb-791a-45f2-998a-4b46ddfa2e15/datastream/OBJ/view