Advanced Search
MyIDEAS: Login to save this article or follow this journal

Incorporating variance and covariance heterogeneity in the Generalized Nested Logit model: an application to modeling long distance travel choice behavior

Contents:

Author Info

  • Koppelman, Frank S.
  • Sethi, Vaneet
Registered author(s):

    Abstract

    The assumption of independently and identically distributed (IID) error terms in the Multinomial Logit (MNL) model leads to its infamous IIA property. Relaxation of the IID assumption has been undertaken along a number of isolated dimensions leading to the development of a rich set of discrete choice models, that are more flexible than the MNL model. In some cases, these more general models lose the mathematically convenient closed-form structure of the MNL. In this paper, we combine the most flexible isolated closed-form extensions of the MNL and Nested Logit (NL) models in an integrated model structure to yield a behaviorally rich, yet computationally tractable choice model. Specifically, we combine the Generalized Nested Logit model that allows for non-independent errors, the Heteroscedastic MNL which allows non-constant errors across observations, and the Covariance Heterogeneous NL model which allows for non-constant correlation structure across observations. The resulting model, called the Heterogeous GNL model extends our ability to represent the complex behavioral processes involved in choice decision-making. The value and need for the additional modeling complexity of the HGNL model is tested in the empirical context of mode and rail service class choice behavior for long distance intercity travel. An incremental modeling approach is adopted, i.e., we start from the simple MNL model and sequentially relax some of its restrictive assumptions to estimate progressively more flexible model structures. The statistical fit and behavioral appeal of the estimated models improve substantially with each additional relaxation, strongly supporting the concept of integrating isolated generalizations.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: http://www.sciencedirect.com/science/article/B6V99-4FCRFCF-1/2/f04d302aa7cb0790371a749dcc62089e
    Download Restriction: Full text for ScienceDirect subscribers only

    As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

    Bibliographic Info

    Article provided by Elsevier in its journal Transportation Research Part B: Methodological.

    Volume (Year): 39 (2005)
    Issue (Month): 9 (November)
    Pages: 825-853

    as in new window
    Handle: RePEc:eee:transb:v:39:y:2005:i:9:p:825-853

    Contact details of provider:
    Web page: http://www.elsevier.com/wps/find/journaldescription.cws_home/548/description#description

    Order Information:
    Postal: http://www.elsevier.com/wps/find/supportfaq.cws_home/regional
    Web: https://shop.elsevier.com/order?id=548&ref=548_01_ooc_1&version=01

    Related research

    Keywords:

    References

    References listed on IDEAS
    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
    as in new window
    1. Papola, Andrea, 2004. "Some developments on the cross-nested logit model," Transportation Research Part B: Methodological, Elsevier, vol. 38(9), pages 833-851, November.
    2. Swait, Joffre & Adamowicz, Wiktor, 2001. "Choice Environment, Market Complexity, and Consumer Behavior: A Theoretical and Empirical Approach for Incorporating Decision Complexity into Models of Consumer Choice," Organizational Behavior and Human Decision Processes, Elsevier, vol. 86(2), pages 141-167, November.
    3. Williams, H. C. W. L. & Ortuzar, J. D., 1982. "Behavioural theories of dispersion and the mis-specification of travel demand models," Transportation Research Part B: Methodological, Elsevier, vol. 16(3), pages 167-219, June.
    4. Swait, Joffre, 2001. "Choice set generation within the generalized extreme value family of discrete choice models," Transportation Research Part B: Methodological, Elsevier, vol. 35(7), pages 643-666, August.
    5. Wen, Chieh-Hua & Koppelman, Frank S., 2001. "The generalized nested logit model," Transportation Research Part B: Methodological, Elsevier, vol. 35(7), pages 627-641, August.
    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 in new window

    Cited by:
    1. Stephane Hess & Denis Bolduc & John Polak, 2010. "Random covariance heterogeneity in discrete choice models," Transportation, Springer, vol. 37(3), pages 391-411, May.
    2. Smirnov, Oleg A. & Egan, Kevin J., 2012. "Spatial random utility model with an application to recreation demand," Economic Modelling, Elsevier, vol. 29(1), pages 72-78.
    3. Koo, Tay T.R. & Wu, Cheng-Lung (Richard) & Dwyer, Larry, 2010. "Ground travel mode choices of air arrivals at regional destinations: The significance of tourism attributes and destination contexts," Research in Transportation Economics, Elsevier, vol. 26(1), pages 44-53.
    4. Ahmadi Azari, Kian & Arintono, Sulistyo & Hamid, Hussain & Rahmat, Riza Atiq O.K., 2013. "Modelling demand under parking and cordon pricing policy," Transport Policy, Elsevier, vol. 25(C), pages 1-9.
    5. de Moraes Ramos, Giselle & Daamen, Winnie & Hoogendoorn, Serge, 2013. "Modelling travellers' heterogeneous route choice behaviour as prospect maximizers," Journal of choice modelling, Elsevier, vol. 6(C), pages 17-33.
    6. Caleb Van Nostrand & Vijayaraghavan Sivaraman & Abdul Pinjari, 2013. "Analysis of long-distance vacation travel demand in the United States: a multiple discrete–continuous choice framework," Transportation, Springer, vol. 40(1), pages 151-171, January.
    7. Abbe, E. & Bierlaire, M. & Toledo, T., 2007. "Normalization and correlation of cross-nested logit models," Transportation Research Part B: Methodological, Elsevier, vol. 41(7), pages 795-808, August.
    8. Fosgerau, M. & Bierlaire, M., 2009. "Discrete choice models with multiplicative error terms," Transportation Research Part B: Methodological, Elsevier, vol. 43(5), pages 494-505, June.
    9. Fosgerau, Mogens & Bierlaire, Michel, 2007. "Circumventing the problem of the scale: discrete choice models with multiplicative error terms," MPRA Paper 3901, University Library of Munich, Germany.
    10. Smirnov, Oleg A., 2010. "Modeling spatial discrete choice," Regional Science and Urban Economics, Elsevier, vol. 40(5), pages 292-298, September.
    11. Hough, Gary & Hassanien, Ahmed, 2010. "Transport choice behaviour of Chinese and Australian tourists in Scotland," Research in Transportation Economics, Elsevier, vol. 26(1), pages 54-65.

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:eee:transb:v:39:y:2005:i:9:p:825-853. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei).

    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 references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.

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