Modeling the choice continuum: an integrated model of residential location, auto ownership, bicycle ownership, and commute tour mode choice decisions

The integrated modeling of land use and transportation choices involves analyzing a continuum of choices that characterize people’s lifestyles across temporal scales. This includes long‐term choices such as residential and work location choices that affect land‐use, medium‐term choices such as vehicle ownership, and short‐term choices such as travel mode choice that affect travel demand. Prior research in this area has been limited by the complexities associated with the development of integrated model systems that combine the long‐, medium‐ and short‐term choices into a unified analytical framework. This paper presents an integrated simultaneous multi‐dimensional choice model of residential location, auto ownership, bicycle ownership, and commute tour mode choices using a mixed multidimensional choice modeling methodology. Model estimation results using the San Francisco Bay Area highlight a series of interdependencies among the multi‐dimensional choice processes. The interdependencies include: (1) self‐selection effects due to observed and unobserved factors, where households locate based on lifestyle and mobility preferences, (2) endogeneity effects, where any one choice dimension is not exogenous to another, but is endogenous to the system as a whole, (3) correlated error structures, where common unobserved factors significantly and simultaneously impact multiple choice dimensions, and (4) unobserved heterogeneity, where decision‐makers show significant variation in sensitivity to explanatory variables due to unobserved factors. From a policy standpoint, to be able to forecast the ‘true’ causal influence of activity‐travel environment changes on residential location, auto/bicycle ownership, and commute mode choices, it is necessary to capture the above‐identified interdependencies by jointly modeling the multiple choice dimensions in an integrated framework.