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A nested logit model of automobile holdings for one vehicle households

  • Berkovec, James
  • Rust, John

This paper presents a model of automobile choice by single vehicle households. This effort is distinguished from previous disaggregate automobile holdings models primarily by the use of the nested logit model rather than the more restrictive multinomial logit model. We present a 2-step estimation technique that provides consistent and asymptotically efficient parameter estimates, yet is tractable for very large choice sets. Using disaggregate data on 237 one-vehicle households we estimate the unknown parameters on an automobile choice model containing 785 individual makes, models and vintages of passenger vehicles.

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

Volume (Year): 19 (1985)
Issue (Month): 4 (August)
Pages: 275-285

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Handle: RePEc:eee:transb:v:19:y:1985:i:4:p:275-285
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