Hybrid Compensatory–Noncompensatory Choice Sets in Semicompensatory Models

Abstract

Semicompensatory models represent a choice process consisting of an elimination-based choice set formation on satisfaction of criterion thresholds and a utility-based choice. Current semicompensatory models assume a purely noncompensatory choice set formation and therefore do not support multinomial criteria that involve trade-offs between attributes at the choice set formation stage. This study proposes a novel behavioral paradigm consisting of a hybrid compensatory–noncompensatory choice set formation process, followed by compensatory choice. The behavioral paradigm is represented by a mathematical model that combines multinomial-response and ordered-response thresholds with a utility-based choice. The proposed model is applied to a stated preference experiment of off-campus rental apartment choices by students. Results demonstrate the applicability and feasibility of incorporating multinomial-response thresholds into semicompensatory models.