Advancing relative utility maximization models: Application to leisure choice behavior

To better understand individual choice behavior, so-called reference-based models are receiving increasing attention. This paper follows the basic assumption underlying relative utility theory that judgments about choice alternatives are made relative to one or more reference points and proposes a general framework in which these references points are defined related to choice alternatives, social network members and time. To do so, first the concept of reference is elaborated such that it acts as an information source and individuals decide to what extent they should believe it. Then, different model specifications in terms of social network-referenced and time-referenced relative utilities are put forward. Finally, the design of a questionnaire about tourists’ destination and itinerary is presented and descriptive statistics of the collected data are provided.