CEE 6640 Microeconometrics of Discrete Choice
Lecture: MW 10:10-11:25 HLS 206
3 credits. Letter grades only.
Understanding individual choice behavior is critical for several disciplines that need to account for demand dynamics. Discrete choice models represent the cognitive process of economic decisions and are widely used in transportation analysis, applied economics, marketing, and urban planning. Discrete choice analysis is used to forecast demand under differing pricing and marketing strategies and to determine how much consumers are willing to pay for qualitative improvements. In transportation engineering, these models allow researchers, firms, and policy-makers to predict demand for new alternatives and infrastructure (e.g. a light rail or a new highway), to analyze the market impact of firm decisions (e.g. merger of two airline companies), to set pricing strategies (e.g. road pricing, toll definition, revenue management), to prioritize research and development decisions (e.g. ultra low emission vehicles) as well as to perform cost-benefit analyses of transportation projects (e.g. building a new bridge).