New Theory of Dynamic Activity Generation

Abstract

We develop a theoretical framework for analyzing and modeling activity choice by individuals and households. The theory assumes that activities are driven by a limited and universal set of human needs. The needs grow autonomously over time according to a logistic curve with parameters depending on the nature of the need. Activities may have an impact on several needs at the same time. We assume that the utility of an activity is equal to the sum of satisfied needs minus the sum of induced needs. The theory developed can explain substitution and complementary relationships between activities, the state-dependency of activity choice and variety seeking behavior. We show how utilities of discrete and continuous choice regarding duration, interval timing, task allocation, travel, location and other choice facets of activities can be derived from basic principles.

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