Discrete choice models with multiplicative error terms

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Discrete choice models with multiplicative error terms. / Fosgerau, M.; Bierlaire, Michel.

I: Transportation Research Part B: Methodological, Bind 43, Nr. 5, 06.2009, s. 494-505.

Publikation: Bidrag til tidsskrift › Tidsskriftartikel › Forskning › fagfællebedømt

Harvard

Fosgerau, M & Bierlaire, M 2009, 'Discrete choice models with multiplicative error terms', Transportation Research Part B: Methodological, bind 43, nr. 5, s. 494-505. https://doi.org/10.1016/j.trb.2008.10.004

APA

Fosgerau, M., & Bierlaire, M. (2009). Discrete choice models with multiplicative error terms. Transportation Research Part B: Methodological, 43(5), 494-505. https://doi.org/10.1016/j.trb.2008.10.004

Vancouver

Fosgerau M, Bierlaire M. Discrete choice models with multiplicative error terms. Transportation Research Part B: Methodological. 2009 jun.;43(5):494-505. https://doi.org/10.1016/j.trb.2008.10.004

Author

Fosgerau, M. ; Bierlaire, Michel. / Discrete choice models with multiplicative error terms. I: Transportation Research Part B: Methodological. 2009 ; Bind 43, Nr. 5. s. 494-505.

Bibtex

@article{13d9371c83034112a16ba82a9cd61060,
title = "Discrete choice models with multiplicative error terms",
abstract = "The conditional indirect utility of many random utility maximization (RUM) discrete choice models is specified as a sum of an index V depending on observables and an independent random term ε. In general, the universe of RUM consistent models is much larger, even fixing some specification of V due to theoretical and practical considerations. In this paper, we explore an alternative RUM model where the summation of V and ε is replaced by multiplication. This is consistent with the notion that choice makers may sometimes evaluate relative differences in V between alternatives rather than absolute differences. We develop some properties of this type of model and show that in several cases the change from an additive to a multiplicative formulation, maintaining a specification of V, may lead to a large improvement in fit, sometimes larger than that gained from introducing random coefficients in V.",
keywords = "Discrete choice, Heteroscedasticity, Multiplicative specification, Multivariate extreme value, Random scale",
author = "M. Fosgerau and Michel Bierlaire",
year = "2009",
month = jun,
doi = "10.1016/j.trb.2008.10.004",
language = "English",
volume = "43",
pages = "494--505",
journal = "Transportation Research. Part B: Methodological",
issn = "0191-2615",
publisher = "Pergamon Press",
number = "5",

}

RIS

TY - JOUR

T1 - Discrete choice models with multiplicative error terms

AU - Fosgerau, M.

AU - Bierlaire, Michel

PY - 2009/6

Y1 - 2009/6

N2 - The conditional indirect utility of many random utility maximization (RUM) discrete choice models is specified as a sum of an index V depending on observables and an independent random term ε. In general, the universe of RUM consistent models is much larger, even fixing some specification of V due to theoretical and practical considerations. In this paper, we explore an alternative RUM model where the summation of V and ε is replaced by multiplication. This is consistent with the notion that choice makers may sometimes evaluate relative differences in V between alternatives rather than absolute differences. We develop some properties of this type of model and show that in several cases the change from an additive to a multiplicative formulation, maintaining a specification of V, may lead to a large improvement in fit, sometimes larger than that gained from introducing random coefficients in V.

AB - The conditional indirect utility of many random utility maximization (RUM) discrete choice models is specified as a sum of an index V depending on observables and an independent random term ε. In general, the universe of RUM consistent models is much larger, even fixing some specification of V due to theoretical and practical considerations. In this paper, we explore an alternative RUM model where the summation of V and ε is replaced by multiplication. This is consistent with the notion that choice makers may sometimes evaluate relative differences in V between alternatives rather than absolute differences. We develop some properties of this type of model and show that in several cases the change from an additive to a multiplicative formulation, maintaining a specification of V, may lead to a large improvement in fit, sometimes larger than that gained from introducing random coefficients in V.

KW - Discrete choice

KW - Heteroscedasticity

KW - Multiplicative specification

KW - Multivariate extreme value

KW - Random scale

UR - http://www.scopus.com/inward/record.url?scp=62849093896&partnerID=8YFLogxK

U2 - 10.1016/j.trb.2008.10.004

DO - 10.1016/j.trb.2008.10.004

M3 - Journal article

AN - SCOPUS:62849093896

VL - 43

SP - 494

EP - 505

JO - Transportation Research. Part B: Methodological

JF - Transportation Research. Part B: Methodological

SN - 0191-2615

IS - 5

ER -

ID: 181872770