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. Arguably, 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. 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.