IDEAS home Printed from https://ideas.repec.org/p/hal/wpaper/hal-00690299.html
   My bibliography  Save this paper

Lower-order logsums

Author

Listed:
  • André de Palma

    (ENS Cachan - École normale supérieure - Cachan)

  • Karim Kilani

    (LIRSA - Laboratoire interdisciplinaire de recherche en sciences de l'action - CNAM - Conservatoire National des Arts et Métiers [CNAM] - HESAM - HESAM Université - Communauté d'universités et d'établissements Hautes écoles Sorbonne Arts et métiers université)

Abstract

The logsum formula, which provides the expected maximum utility for the multinomial logit model, is often used as a measure of welfare. We provide here a closed form formula of the welfare measure of an individual who has not access to his first-best choice, but has access to his rth-best choice, r = 2, ...n, where n is the number of alternatives. The derivation is based on a standard identity in order statistics.

Suggested Citation

  • André de Palma & Karim Kilani, 2012. "Lower-order logsums," Working Papers hal-00690299, HAL.
    • Handle: RePEc:hal:wpaper:hal-00690299
    Note: View the original document on HAL open archive server: https://hal.science/hal-00690299
    as

    Download full text from publisher

    File URL: https://hal.science/hal-00690299/document
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. de Palma, Andre & Picard, Nathalie & Waddell, Paul, 2007. "Discrete choice models with capacity constraints: An empirical analysis of the housing market of the greater Paris region," Journal of Urban Economics, Elsevier, vol. 62(2), pages 204-230, September.
    2. de Palma, Andre & Kilani, Karim, 2007. "Invariance of conditional maximum utility," Journal of Economic Theory, Elsevier, vol. 132(1), pages 137-146, January.
    3. de Jong, Gerard & Daly, Andrew & Pieters, Marits & van der Hoorn, Toon, 2007. "The logsum as an evaluation measure: Review of the literature and new results," Transportation Research Part A: Policy and Practice, Elsevier, vol. 41(9), pages 874-889, November.
    4. N. Salakbishnan, 1988. "Recurrence relations for order statistics from n independent and non-identically distributed random variables," Annals of the Institute of Statistical Mathematics, Springer;The Institute of Statistical Mathematics, vol. 40(2), pages 273-277, June.
    Full references (including those not matched with items on IDEAS)

    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. André de Palma & Karim Kilani, 2009. "Transition choice probabilities and welfare in ARUM's," Working Papers hal-00417493, HAL.
    2. van Wee, Bert & Bohte, Wendy & Molin, Eric & Arentze, Theo & Liao, Feixiong, 2014. "Policies for synchronization in the transport–land-use system," Transport Policy, Elsevier, vol. 31(C), pages 1-9.
    3. Simone Bertoli & Hillel Rapoport, 2015. "Heaven's Swing Door: Endogenous Skills, Migration Networks, and the Effectiveness of Quality-Selective Immigration Policies," Scandinavian Journal of Economics, Wiley Blackwell, vol. 117(2), pages 565-591, April.
    4. Brücker, Herbert & Bertoli, Simone & Fernández-Huertas Moraga, Jesús, 2013. "The European Crisis and Migration to Germany: Expectations and the Diversion of Migration Flows," VfS Annual Conference 2013 (Duesseldorf): Competition Policy and Regulation in a Global Economic Order 79693, Verein für Socialpolitik / German Economic Association.
    5. Narcisse Cha'Ngom & Christoph Deuster & Frédéric Docquier & Joël Machado, 2023. "Selective Migration and Economic Development: A Generalized Approach," LISER Working Paper Series 2023-06, Luxembourg Institute of Socio-Economic Research (LISER).
    6. Michel Beine & Marco Delogu & Lionel Ragot, 2017. "The Role of Fees in Foreign Education: Evidence From Italy and the United Kingdom," Working Papers 2017-04, CEPII research center.
    7. Russo, Francesco & Musolino, Giuseppe, 2012. "A unifying modelling framework to simulate the Spatial Economic Transport Interaction process at urban and national scales," Journal of Transport Geography, Elsevier, vol. 24(C), pages 189-197.
    8. Aaron Childs & N. Balakrishnan & Mohamed Moshref, 2001. "Order statistics from non-identical right-truncated Lomax random variables with applications," Statistical Papers, Springer, vol. 42(2), pages 187-206, April.
    9. André de Palma & Nathalie Picard & Ignacio Inoa, 2014. "Discrete choice decision-making with multiple decision-makers within the household," Chapters, in: Stephane Hess & Andrew Daly (ed.), Handbook of Choice Modelling, chapter 16, pages 363-382, Edward Elgar Publishing.
    10. Karst T. Geurs & Kevin J. Krizek & Aura Reggiani, 2012. "Accessibility analysis and transport planning: an introduction," Chapters, in: Karst T. Geurs & Kevin J. Krizek & Aura Reggiani (ed.), Accessibility Analysis and Transport Planning, chapter 1, pages 1-12, Edward Elgar Publishing.
    11. André de Palma & Nathalie Picard & Robin Lindsey, 2021. "Activity and Transportation Decisions within Households," THEMA Working Papers 2021-18, THEMA (THéorie Economique, Modélisation et Applications), Université de Cergy-Pontoise.
    12. Hartleb, Johann & Schmidt, Marie, 2022. "Railway timetabling with integrated passenger distribution," European Journal of Operational Research, Elsevier, vol. 298(3), pages 953-966.
    13. Rubensson, Isak & Susilo, Yusak & Cats, Oded, 2020. "Fair accessibility – Operationalizing the distributional effects of policy interventions," Journal of Transport Geography, Elsevier, vol. 89(C).
    14. Aaron Childs, 2003. "Higher order moments of order statistics from INID exponential random variables," Statistical Papers, Springer, vol. 44(2), pages 151-167, April.
    15. Simone Bertoli & Ilse Ruyssen, 2018. "Networks and migrants’ intended destination," Journal of Economic Geography, Oxford University Press, vol. 18(4), pages 705-728.
    16. David W. Berger & Kyle F. Herkenhoff & Simon Mongey, 2022. "Minimum Wages, Efficiency and Welfare," Opportunity and Inclusive Growth Institute Working Papers 058, Federal Reserve Bank of Minneapolis.
    17. Rodriguez-Roman, Daniel & Ritchie, Stephen G., 2020. "Surrogate-based optimization for multi-objective toll design problems," Transportation Research Part A: Policy and Practice, Elsevier, vol. 137(C), pages 485-503.
    18. Hartleb, J. & Schmidt, M.E. & Friedrich, M. & Huisman, D., 2019. "A good or a bad timetable: Do different evaluation functions agree?," ERIM Report Series Research in Management ERS-2019-002-LIS, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
    19. Koşar, Gizem & Ransom, Tyler & van der Klaauw, Wilbert, 2022. "Understanding migration aversion using elicited counterfactual choice probabilities," Journal of Econometrics, Elsevier, vol. 231(1), pages 123-147.
    20. André de Palma & Soumyanetra Munshi, 2012. "Multi-player, Multi-prize, Imperfectly Discriminating Contests," Working Papers hal-00683688, HAL.

    More about this item

    Keywords

    Discrete choice models; Gumbel distribution; Logit; Logsum; Order statistics;
    All these keywords.

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    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:hal:wpaper:hal-00690299. 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: CCSD (email available below). General contact details of provider: https://hal.archives-ouvertes.fr/ .

    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.