Incorporating time and income constraints in dynamic agent-based models of activity generation and time use: Approach and illustration

Existing theories and models in economics and transportation treat households’ decisions regarding allocation of time and income to activities as a resource-allocation optimization problem. This stands in contrast with the dynamic nature of day-by-day activity-travel choices. Therefore, in the present paper we propose a different approach to model activity generation and allocation decisions of individuals and households that acknowledges the dynamic nature of the behavior. A dynamic representation of time and money allocation decisions is necessary to properly understand the impact of new technologies on day to day variations in travel and activity patterns and on performance of transportation systems. We propose an agent-based model where agents, rather than acting on the basis of a resource allocation solution for a given time period, make resource allocation decisions on a day-by-day basis taking into account day-varying conditions and at the same time respecting available budgets over a longer time horizon. Agents that share a household interact and allocate household tasks and budgets among each other. We introduce the agent-based model and formally discuss the properties of the model. The approach is illustrated on the basis of simulation of behavior in time and space.