Advanced Search
MyIDEAS: Login

We Know What You Choose! External Validity of Discrete Choice Models

Contents:

Author Info

  • R. Karina Gallardo
  • Jaebong Chang

    ()
    (School of Economic Sciences, Washington State University)

Abstract

For over the last thirty years the multinomial logit model has been the standard in choice modeling. Development in econometrics and computational algorithms has led to the increasing tendency to opt for more flexible models able to depict more realistically choice behavior. This study compares three discrete choice models, the standard multinomial logit, the error components logit, and the random parameters logit. Data were obtained from two choice experiments conducted to investigate consumers’ preferences for fresh pears receiving several postharvest treatments. Model comparisons consisted of in-sample and holdout sample evaluations. Results show that product characteristics hence, datasets, influence model performance. We also found that the multinomial logit model outperformed in at least one of three evaluations in both datasets. Overall, findings signal the need for further studies controlling for context and dataset to have more conclusive cues for discrete choice models capabilities.

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://faculty.ses.wsu.edu/WorkingPapers/Gallardo/WP2010-7.pdf
File Function: First version, 2010
Download Restriction: no

Bibliographic Info

Paper provided by School of Economic Sciences, Washington State University in its series Working Papers with number 2009-07.

as in new window
Length: 23 pages
Date of creation: Apr 2010
Date of revision:
Handle: RePEc:wsu:wpaper:gallardo-6

Contact details of provider:
Postal: PO Box 646210, Pullman, WA 99164-646210
Phone: 509-335-5555
Fax: 509-335-1173
Web page: http://faculty.ses.wsu.edu/
More information through EDIRC

Related research

Keywords: discrete choice models; validation; holdout sample;

Find related papers by JEL classification:

This paper has been announced in the following NEP Reports:

References

No references listed on IDEAS
You can help add them by filling out this form.

Citations

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:wsu:wpaper:gallardo-6. 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: (Danielle Engelhardt).

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.