A latent class dynamic discrete choice model for travel behaviour and scheduling

In travel behaviour modelling, latent class models are used to represent underlying discrete groupings of behavioural preferences. The paper presents a latent class extension of a dynamic discrete choice model (DDCM) and applies the model to the problem of activity demand generation and scheduling. The DDCM is a recursive multinomial logit model where agents make sequential decisions in time, maximizing the expected future utility of their decisions in a random utility maximization framework. It generates activities and their associated travel within a full day schedule, endogenously respecting agents’ inherent time-space constraints. The latent class DDCM builds on the base model by representing heterogeneous lifestyle preferences. A specification of the model is estimated on a Stockholm travel survey and uses age, income level, gender, car ownership and presence of children in the household as classifying variables. The models result in classes which primarily represent modality styles, finding car-, transit- and bike-primary behavioural groups as well as a multimodal group, each linked with different socio-demographic characteristics. The models improve over non-latent class reference models and provide insight into the structure of heterogeneity in travel behaviour preferences in Stockholm. • A latent class dynamic discrete choice model is developed. • The model captures population heterogeneity in full-day activity/travel schedules. • We estimate the model using travel survey data from Stockholm. • We find discrete travel behaviour lifestyle groupings linked to socio-economics. • The most prominent division in travel behaviour is in mode choice.