Tests for the consistency of three-level nested logit models with utility maximization
AbstractThis paper provides necessary conditions for testing the local consistency of three-level nested logit models with random utility maximization. We find that for a model with two sub-nests per nest the conditions can lead to a substantial increase in the range of acceptable dissimilarity parameters, irrespective of the number of alternatives per sub-nest.
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Bibliographic InfoPaper provided by EconWPA in its series Econometrics with number 0312001.
Length: 13 pages
Date of creation: 04 Dec 2003
Date of revision: 08 Jan 2004
Note: Type of Document - ; prepared on WinXP; to print on LaserJet IIIp; pages: 13
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Nested logit; Discrete choice; Random utility maximization;
Other versions of this item:
- Gil-Molto, Maria Jose & Hole, Arne Risa, 2004. "Tests for the consistency of three-level nested logit models with utility maximization," Economics Letters, Elsevier, vol. 85(1), pages 133-137, October.
- Maria Jos� Gil-Molt� & Arne Risa Hole, 2003. "Tests for the consistency of three-level nested logit models with utility maximization," Discussion Paper Series, Department of Economics 200313, Department of Economics, University of St. Andrews.
- C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions
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