Standard and Shuffled Halton Sequences in a Mixed Logit Model
AbstractModeling consumer choice in different areas has lead to an increase use of discrete choice models. Probit or Multinomial Logit Models are often the base of further empirical research of consumer choice. In some of these models the equations to solve have no closed-form expression. They include multi-dimensional integrals which can not be solved analytically. Simulation methods have been developed to approximate a solution for these integrals. This paper describes the Standard Halton sequence and a modification of it, the Shuffled Halton sequence. Both are simulation methods which can reduce computational effort compared to a random sequence. We compare the simulation methods in their coverage of the multi-dimensional area and in their estimation results using data of consumer choice on grocery store formats.
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Bibliographic InfoPaper provided by University of Hohenheim, Institute for Agricultural Policy and Agricultural Markets in its series Hohenheimer Agrarökonomische Arbeitsberichte with number 17.
Length: 29 pages
Date of creation: Sep 2008
Date of revision:
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More information through EDIRC
simulation; mixed logit; halton sequence;
Find related papers by JEL classification:
- C15 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Statistical Simulation Methods: General
- C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions
This paper has been announced in the following NEP Reports:
- NEP-ALL-2008-11-04 (All new papers)
- NEP-CMP-2008-11-04 (Computational Economics)
- NEP-DCM-2008-11-04 (Discrete Choice Models)
- NEP-ECM-2008-11-04 (Econometrics)
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