An Enhanced Approach to the Random Utility Maximization Model: Incorporating Relative Utility Differences Among Alternatives

An Enhanced Approach to the Random Utility Maximization Model: Incorporating Relative Utility Differences Among Alternatives | Research Square window.SnipcartSettings = { analytics: { enabled: false } }; (function() { var accessVector = localStorage.getItem('access_vector') || ''; window.dataLayer = window.dataLayer || []; if (accessVector) { window.dataLayer.push({ user: { profile: { profileInfo: { snid: accessVector } } } }); } })(); (function(w,d,s,l,i){w[l]=w[l]||[];w[l].push({'gtm.start':new Date().getTime(),event:'gtm.js'});var f=d.getElementsByTagName(s)[0],j=d.createElement(s),dl=l!='dataLayer'?'&l='+l:'';j.async=true;j.src='https://www.googletagmanager.com/gtm.js?id='+i+dl;f.parentNode.insertBefore(j,f);})(window,document,'script','dataLayer','GTM-K279D39R'); Browse Preprints In Review Journals COVID-19 Preprints AJE Video Bytes Research Tools Research Promotion AJE Professional Editing AJE Rubriq About Preprint Platform In Review Editorial Policies Our Team Advisory Board Help Center Sign In Submit a Preprint Cite Share Download PDF Research Article An Enhanced Approach to the Random Utility Maximization Model: Incorporating Relative Utility Differences Among Alternatives Jahun Koo, Sangho Choo This is a preprint; it has not been peer reviewed by a journal. https://doi.org/ 10.21203/rs.3.rs-8531117/v1 This work is licensed under a CC BY 4.0 License Status: Posted Version 1 posted You are reading this latest preprint version Abstract This study proposes the Random Combined Utility Maximization (RCM) model, a novel utility framework for transportation choice that integrates independent utility with relative utility comparisons on a consistent scale. The RCM model retains the behavioral foundation of random utility maximization while explicitly representing comparison-based decision making across alternatives. The relative utility incorporates the Irrelevance of Statewise Dominated Alternatives (ISDA), implying that comparisons become behaviorally negligible when utility differences are extreme. To operationalize ISDA in a smooth and estimable form, we apply a hyperbolic secant transformation, such that relative utility is primarily generated among alternatives with similar utility levels. This formulation provides a structural refinement that addresses limitations of existing utility specifications without introducing additional explanatory variables. Using multiple transportation choice datasets and a common specification based on time and cost, we benchmark the RCM model against widely used alternatives, including Random Utility Maximization, Random Regret Minimization, and Relative Advantage Maximization. Across all datasets considered, the RCM model delivers the best overall performance in terms of model fit and predictive accuracy. Although the magnitude of improvement varies across datasets, the consistent gains across evaluation criteria indicate that the RCM model captures observed choice behavior more reliably than conventional utility formulations. New utility function Mode choice Relative utility Discrete choice model Full Text Additional Declarations No competing interests reported. Cite Share Download PDF Status: Posted Version 1 posted You are reading this latest preprint version Research Square lets you share your work early, gain feedback from the community, and start making changes to your manuscript prior to peer review in a journal. As a division of Research Square Company, we’re committed to making research communication faster, fairer, and more useful. We do this by developing innovative software and high quality services for the global research community. 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Also discoverable on Platform About Our Team In Review Editorial Policies Advisory Board Help Center Resources Author Services Accessibility API Access RSS feed Manage Cookie Preferences © Research Square 2026 | ISSN 2693-5015 (online) Privacy Policy Terms of Service Do Not Sell My Personal Information {"props":{"pageProps":{"initialData":{"identity":"rs-8531117","acceptedTermsAndConditions":true,"allowDirectSubmit":true,"archivedVersions":[],"articleType":"Research Article","associatedPublications":[],"authors":[{"id":588173503,"identity":"06652c07-8e06-401c-a4df-ec41e850c84c","order_by":0,"name":"Jahun Koo","email":"","orcid":"","institution":"Hongik University","correspondingAuthor":false,"prefix":"","firstName":"Jahun","middleName":"","lastName":"Koo","suffix":""},{"id":588173505,"identity":"71832351-faa4-4b5d-9ccc-caa9efccd8b9","order_by":1,"name":"Sangho Choo","email":"data:image/png;base64,iVBORw0KGgoAAAANSUhEUgAAAZAAAAAyAQMAAABI0h/eAAAABlBMVEX///8AAABVwtN+AAAACXBIWXMAAA7EAAAOxAGVKw4bAAAA1UlEQVRIiWNgGAWjYDACCQY2IGmTAGIfbACRPMRpSSNdy2GwFkaitMjPbn724EPF+Tx+6faLB2cw2Mkz8Jx9gFeLwZ1j5oYzztwulpxzpuDgBoZkwwbedgP8WiRy2KR5224nbriRk3DwAQNzAgM/GwGHzQBrOQfTUk9YC8MNsJYDQC3pB4AOO5zAwNuGX4fBjTQzyRlnkhNnzshhODjD4LhhG88xQg5LfibxocIusV8i/fHHnopqeX6eNAIOQwAeYEABESGfIAP2ByQoHgWjYBSMgpEEABhzRonK0j60AAAAAElFTkSuQmCC","orcid":"","institution":"Hongik University","correspondingAuthor":true,"prefix":"","firstName":"Sangho","middleName":"","lastName":"Choo","suffix":""}],"badges":[],"createdAt":"2026-01-06 12:08:44","currentVersionCode":1,"declarations":"","doi":"10.21203/rs.3.rs-8531117/v1","doiUrl":"https://doi.org/10.21203/rs.3.rs-8531117/v1","draftVersion":[],"editorialEvents":[],"editorialNote":"","failedWorkflow":false,"files":[{"id":106481738,"identity":"1c00f5cc-e321-4dfd-88f5-b508d0409376","added_by":"auto","created_at":"2026-04-09 04:56:01","extension":"pdf","order_by":1,"title":"","display":"","copyAsset":false,"role":"manuscript-pdf","size":531126,"visible":true,"origin":"","legend":"","description":"","filename":"Manuscriptv4.pdf","url":"https://assets-eu.researchsquare.com/files/rs-8531117/v1_covered_09c4a0c4-9bad-4a99-83ea-c0fbd447591f.pdf"}],"financialInterests":"No competing interests reported.","formattedTitle":"An Enhanced Approach to the Random Utility Maximization Model: Incorporating Relative Utility Differences Among Alternatives","fulltext":[],"fulltextSource":"","fullText":"","funders":[],"hasAdminPriorityOnWorkflow":false,"hasManuscriptDocX":false,"hasOptedInToPreprint":true,"hasPassedJournalQc":"","hasAnyPriority":false,"hideJournal":true,"highlight":"","institution":"","isAcceptedByJournal":false,"isAuthorSuppliedPdf":true,"isDeskRejected":"","isHiddenFromSearch":false,"isInQc":false,"isInWorkflow":false,"isPdf":true,"isPdfUpToDate":true,"isWithdrawnOrRetracted":false,"journal":{"display":true,"email":"[email protected]","identity":"researchsquare","isNatureJournal":false,"hasQc":true,"allowDirectSubmit":true,"externalIdentity":"","sideBox":"","snPcode":"","submissionUrl":"/submission","title":"Research Square","twitterHandle":"researchsquare","acdcEnabled":true,"dfaEnabled":false,"editorialSystem":"","reportingPortfolio":"","inReviewEnabled":false,"inReviewRevisionsEnabled":true},"keywords":"New utility function, Mode choice, Relative utility, Discrete choice model","lastPublishedDoi":"10.21203/rs.3.rs-8531117/v1","lastPublishedDoiUrl":"https://doi.org/10.21203/rs.3.rs-8531117/v1","license":{"name":"CC BY 4.0","url":"https://creativecommons.org/licenses/by/4.0/"},"manuscriptAbstract":"\u003cp\u003eThis study proposes the Random Combined Utility Maximization (RCM) model, a novel utility framework for transportation choice that integrates independent utility with relative utility comparisons on a consistent scale. 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