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A destination choice model is an econometric model that can be used to understand and predict the choice of trip destination, or in other words, the choice of activity location at the destination end of a trip. They can be used alone or as part of a regional travel demand model system. For instance, the trip distribution model in a four-step Urban Transportation Modeling System (UTMS) could be represented by a destination choice model when the analysis is undertaken at the disaggregate level. (A UTMS could operate at the aggregate level of trips between zones or at the disaggregate level of trips made by individual travelers.) Destination choice models can also be used to predict the locations of activity stops in an activity-based transportation model and are referred to as location choice models in this context. The analysis of short-term mobility behavior, in the form of daily activity and travel patterns, is thus the primary purpose of destination choice models.

The choice of destination is typically a specific building (for example, work or restaurant location) or a set of buildings (for example, a shopping complex or area). However, for transportation planning purposes, destination choice models usually operate with zonal choice alternatives, which are spatial clusters of elemental alternatives. The study area is divided into zones, for instance, transportation analysis zones (TAZs) or census divisions (tracts, blockgroups, blocks), which are described by attributes such as area, population, accessibility, land use composition, distance from the individual's home or work locations.

The zonal approach is preferred because (1) the use of elemental destination alternatives would impose a much larger computational burden, (2) data is rarely if ever available at the elemental level, and (3) for transportation planning, the desired objective is the prediction of trip interchanges between zonal pairs. While zonal destination choice models are the norm, improved computational capacity in recent times has meant that analysts can define smaller zones. Accordingly, the most spatially detailed models today operate on parcels. (A “parcel” is a land area that is managed as a single, relatively large unit, defined either to consist of a single land use or based on ownership; parcels could often, though not always, correspond to elemental destination choice alternatives.)

Model Structure and Calibration

Destination choice models are usually designed as random utility maximization (RUM)–based discrete choice models, where individual i is assumed to gain a stochastic utility Uij from zone j as shown in the equation below:

Uij = Vij + εij

where Vij is the deterministic component of the utility and εij is a random (stochastic) error term. The deterministic component of the utility is hypothesized to be a function of observable attributes Xi, Yj, and Zj, for example:

Vij = fXi,Yj,Zj

where Xi is the vector of individual socioeconomic attributes (such as age, gender, employment status, income, possession of drivers license), Yj is the vector of attributes of the zonal alternatives that are indicative of size (such as area, population, number of employees by occupation type), Zj is the vector of nonsize attributes of the zones (such as accessibility, distance from the individual's work or home location), and θ is the vector of parameters to be calibrated (estimated). Different assumptions on the distribution of the stochastic error term lead to different model structures and corresponding formulations for the probability that individual i chooses destination j. The simplest of these is the multinomial logit model of destination choice.

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