Integrating Household-Level Mode Choice and Modal Expenditure Decisions in a Developing Country: Multiple Discrete-Continuous Extreme Value Model

Document Type

Journal Article

Publication Date


Subject Area

ridership - mode choice


Utility maximization, Under developed countries, Third world, Multiple discrete continuous extreme value model, Mode choice, Modal choice, Madras (India), Less developed countries, Households, Expenditures, Discrete choice models, Developing countries, Decision making, Choice of transportation, Choice models, Chennai (India)


This paper investigates two mode-related dimensions at the household level, namely, mode choice and modal use intensity (as reflected by modal expenditures). These dimensions are analyzed jointly in the context of Chennai city in India, by using a large disaggregate database consisting of more than 2,000 households. Specifically, the objectives of this study are to analyze mode choice decisions at the household level, to integrate mode choice and mode usage using a suitable model, and to analyze the effect of contextual factors relevant to developing countries on the mode choice propensity and mode use intensity. At the household level, the mode choice problem is a multiple discrete choice problem (multiple alternatives may be selected) in contrast to the singly discrete nature of the individual mode choice problem. Therefore, a multiple discrete–continuous extreme value model is formulated to integrate choice and usage, based on a coherent utility maximization framework. To the authors’ knowledge, this study is the first to model mode choice as a multiple discrete choice problem. The results reveal that several unique and context-specific features in developing countries affect household-level mode choice significantly. Further, the mode use intensity of alternative modes is influenced by prior mode choice decisions, inertia, and user’s perception of safety and congestion. The results have important planning and policy implications for transit improvement and congestion mitigation strategies.