IDEAS home Printed from https://ideas.repec.org/a/eee/eejocm/v21y2016icp25-29.html
   My bibliography  Save this article

Presenting the Independence of Irrelevant Alternatives property in a first course on logit modeling

Author

Listed:
  • Mokhtarian, Patricia L.

Abstract

The brief treatment of IIA offered in most introductory courses and textbooks leaves a number of important points unsaid, and may paint an incomplete and misleading picture of its nature. This note supplements such treatments with additional detail. Specifically, we first present three causes or types of IIA violations, and describe some common ways in which they occur. We then present some typical tests/remedies for IIA violations, indicating which types of violation they are best suited to identify, and how they “work” in terms of remedying a violation. We close with some additional pertinent observations.

Suggested Citation

  • Mokhtarian, Patricia L., 2016. "Presenting the Independence of Irrelevant Alternatives property in a first course on logit modeling," Journal of choice modelling, Elsevier, vol. 21(C), pages 25-29.
    • Handle: RePEc:eee:eejocm:v:21:y:2016:i:c:p:25-29
    DOI: 10.1016/j.jocm.2016.08.002
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1755534515300828
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jocm.2016.08.002?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Louis Grange & Felipe González & Ignacio Vargas & Rodrigo Troncoso, 2015. "A Logit Model With Endogenous Explanatory Variables and Network Externalities," Networks and Spatial Economics, Springer, vol. 15(1), pages 89-116, March.
    2. Hausman, Jerry & McFadden, Daniel, 1984. "Specification Tests for the Multinomial Logit Model," Econometrica, Econometric Society, vol. 52(5), pages 1219-1240, September.
    3. Vij, Akshay & Walker, Joan L., 2016. "How, when and why integrated choice and latent variable models are latently useful," Transportation Research Part B: Methodological, Elsevier, vol. 90(C), pages 192-217.
    4. Jordan Louviere & Kenneth Train & Moshe Ben-Akiva & Chandra Bhat & David Brownstone & Trudy Cameron & Richard Carson & J. Deshazo & Denzil Fiebig & William Greene & David Hensher & Donald Waldman, 2005. "Recent Progress on Endogeneity in Choice Modeling," Marketing Letters, Springer, vol. 16(3), pages 255-265, December.
    5. Fry, Tim R. L. & Harris, Mark N., 1996. "A Monte Carlo study of tests for the independence of irrelevant alternatives property," Transportation Research Part B: Methodological, Elsevier, vol. 30(1), pages 19-30, February.
    6. Train,Kenneth E., 2009. "Discrete Choice Methods with Simulation," Cambridge Books, Cambridge University Press, number 9780521766555.
    7. Lee, Lung-Fei, 1982. "Specification error in multinomial logit models : Analysis of the omitted variable bias," Journal of Econometrics, Elsevier, vol. 20(2), pages 197-209, November.
    8. Gaundry, Marc J. I. & Dagenais, Marcel G., 1979. "The dogit model," Transportation Research Part B: Methodological, Elsevier, vol. 13(2), pages 105-111, June.
    9. Langford E. & Schwertman N. & Owens M., 2001. "Is the Property of Being Positively Correlated Transitive?," The American Statistician, American Statistical Association, vol. 55, pages 322-325, November.
    10. Bjorn, Paul A. & Vuong, Quang H., 1985. "A note on the independence of irrelevant alternatives in probabilistic choice models," Economics Letters, Elsevier, vol. 18(4), pages 305-307.
    11. Jeffrey M Wooldridge, 2010. "Econometric Analysis of Cross Section and Panel Data," MIT Press Books, The MIT Press, edition 2, volume 1, number 0262232588, December.
    12. Timothy J. Tardiff, 1979. "Specification Analysis for Quantal Choice Models," Transportation Science, INFORMS, vol. 13(3), pages 179-190, August.
    13. Horowitz, Joel, 1981. "Identification and diagnosis of specification errors in the multinomial logit model," Transportation Research Part B: Methodological, Elsevier, vol. 15(5), pages 345-360, October.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Bredtmann, Julia & Nowotny, Klaus & Otten, Sebastian, 2020. "Linguistic distance, networks and migrants’ regional location choice," Labour Economics, Elsevier, vol. 65(C).
    2. Julia Bredtmann & Klaus Nowotny & Sebastian Otten, 2017. "Linguistic Distance, Networks and Migrants’ Regional Location Choice," RF Berlin - CReAM Discussion Paper Series 1712, Rockwool Foundation Berlin (RF Berlin) - Centre for Research and Analysis of Migration (CReAM).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Guevara, C. Angelo, 2018. "Overidentification tests for the exogeneity of instruments in discrete choice models," Transportation Research Part B: Methodological, Elsevier, vol. 114(C), pages 241-253.
    2. Erik Stam & Roy Thurik & Peter van der Zwan, 2010. "Entrepreneurial exit in real and imagined markets," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 19(4), pages 1109-1139, August.
    3. Vijverberg, Wim P., 2011. "Testing for IIA with the Hausman-McFadden Test," IZA Discussion Papers 5826, Institute of Labor Economics (IZA).
    4. Caplan, Arthur J. & Akhundjanov, Sherzod B. & Toll, Kristopher, 2021. "Measuring heterogeneous preferences for residential amenities," Regional Science and Urban Economics, Elsevier, vol. 87(C).
    5. Yu Li & Yan A. Zhang & Wei Shi, 2020. "Navigating geographic and cultural distances in international expansion: The paradoxical roles of firm size, age, and ownership," Strategic Management Journal, Wiley Blackwell, vol. 41(5), pages 921-949, May.
    6. Curtis, John & McCoy, Daire & Aravena, Claudia, 2018. "Heating system upgrades: The role of knowledge, socio-demographics, building attributes and energy infrastructure," Energy Policy, Elsevier, vol. 120(C), pages 183-196.
    7. Tim R. L. Fry & Mark N. Harris, 1998. "Testing for Independence of Irrelevant Alternatives," Sociological Methods & Research, , vol. 26(3), pages 401-423, February.
    8. Guevara, C. Angelo, 2015. "Critical assessment of five methods to correct for endogeneity in discrete-choice models," Transportation Research Part A: Policy and Practice, Elsevier, vol. 82(C), pages 240-254.
    9. Fry, Tim R. L. & Harris, Mark N., 1996. "A Monte Carlo study of tests for the independence of irrelevant alternatives property," Transportation Research Part B: Methodological, Elsevier, vol. 30(1), pages 19-30, February.
    10. Simon Cheng & J. Scott Long, 2007. "Testing for IIA in the Multinomial Logit Model," Sociological Methods & Research, , vol. 35(4), pages 583-600, May.
    11. Bartolj, Tjaša & Polanec, Sašo, 2012. "College major choice and ability: Why is general ability not enough?," Economics of Education Review, Elsevier, vol. 31(6), pages 996-1016.
    12. Hoyos Ramos, David, 2010. "Using discrete choice experiments for environmental valuation," BILTOKI 1134-8984, Universidad del País Vasco - Departamento de Economía Aplicada III (Econometría y Estadística).
    13. Guevara, C. Angelo & Hess, Stephane, 2019. "A control-function approach to correct for endogeneity in discrete choice models estimated on SP-off-RP data and contrasts with an earlier FIML approach by Train & Wilson," Transportation Research Part B: Methodological, Elsevier, vol. 123(C), pages 224-239.
    14. Fernández-Antolín, Anna & Guevara, C. Angelo & de Lapparent, Matthieu & Bierlaire, Michel, 2016. "Correcting for endogeneity due to omitted attitudes: Empirical assessment of a modified MIS method using RP mode choice data," Journal of choice modelling, Elsevier, vol. 20(C), pages 1-15.
    15. Arjun Seshadri & Johan Ugander, 2020. "Fundamental Limits of Testing the Independence of Irrelevant Alternatives in Discrete Choice," Papers 2001.07042, arXiv.org.
    16. Curtis, John & McCoy, Daire & Aravena Novielli, Claudia, 2017. "Determinants of residential heating system choice: an analysis of Irish households," Papers WP576, Economic and Social Research Institute (ESRI).
    17. Pereira, Pedro & Ribeiro, Tiago, 2011. "The impact on broadband access to the Internet of the dual ownership of telephone and cable networks," International Journal of Industrial Organization, Elsevier, vol. 29(2), pages 283-293, March.
    18. Brown, Sarah & Greene, William H. & Harris, Mark N. & Taylor, Karl, 2015. "An inverse hyperbolic sine heteroskedastic latent class panel tobit model: An application to modelling charitable donations," Economic Modelling, Elsevier, vol. 50(C), pages 228-236.
    19. Sakaue, Katsuki, 2018. "Informal fee charge and school choice under a free primary education policy: Panel data evidence from rural Uganda," International Journal of Educational Development, Elsevier, vol. 62(C), pages 112-127.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:eejocm:v:21:y:2016:i:c:p:25-29. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.journals.elsevier.com/journal-of-choice-modelling .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.