A general and operational representation of Generalised Extreme Value models
Generalised extreme value models provide an interesting theoretical framework to develop closed-form random utility models. Unfortunately, few instances of this family are to be found as operational models in practice. The form of the model, based on a generating function G which must satisfy specific properties, is rather complicated. Fundamentally, it is not an easy task to translate an intuitive perception of the correlation structure by the modeller into a concrete G function. And even if the modeller succeeds in proposing a new G function, the task of proving that it indeed satisfies the properties is cumbersome. In modelling transportation demand, researchers face the problem that many of the choices they wish to model interact in complex ways. One approach to this problem is to use mixed logit models, exploiting the power of simulation-based estimation, to incorporate the interactions required. An alternative approach, however, which is followed in this paper, is to exploit further the GEV model family originally proposed by McFadden [McFadden, D., 1978. Modelling the choice of residential location. In: Karlquist, A. et al. (Eds.), Spatial Interaction Theory and Residential Location. North-Holland, Amsterdam, pp. 75-96]. The main objectives of this paper are (i) to provide a general theoretical foundation, so that the development of new GEV models will be easier in the future, and (ii) to propose an easy way of generating new GEV models without a need for complicated proofs. Our technique requires only a network structure capturing the underlying correlation of the choice situation under consideration. If the network complies with some simple conditions, we show how to build an associated model. We prove that it is indeed a GEV model and, therefore, complies with random utility theory. The multinomial logit, the nested logit and the cross-nested logit models are specific instances of our class of models. So are the recent GenL model, combining choice set generation and choice model and some specialised compound models used in recent transportation work. Probability, expected maximum utility and elasticity formulae for the class of models are provided.
Volume (Year): 40 (2006)
Issue (Month): 4 (May)
|Contact details of provider:|| Web page: http://www.elsevier.com/wps/find/journaldescription.cws_home/548/description#description|
|Order Information:|| Postal: http://www.elsevier.com/wps/find/supportfaq.cws_home/regional|
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Papola, Andrea, 2004. "Some developments on the cross-nested logit model," Transportation Research Part B: Methodological, Elsevier, vol. 38(9), pages 833-851, November.
- Koppelman, Frank S. & Wen, Chieh-Hua, 2000. "The paired combinatorial logit model: properties, estimation and application," Transportation Research Part B: Methodological, Elsevier, vol. 34(2), pages 75-89, February.
- Philippe Robert-Demontrond & R. Ringoot, 2004. "Introduction," Post-Print halshs-00081823, HAL.
- Daly, Andrew, 1987. "Estimating "tree" logit models," Transportation Research Part B: Methodological, Elsevier, vol. 21(4), pages 251-267, August.
- Bhat, Chandra R., 1998. "Analysis of travel mode and departure time choice for urban shopping trips," Transportation Research Part B: Methodological, Elsevier, vol. 32(6), pages 361-371, August.
- Axel BÃ¶rsch-Supan & Moshe Ben-Akiva & Kenneth Train & Daniel McFadden, 2002.
"Hybrid Choice Models: Progress and Challenges,"
MEA discussion paper series
02009, Munich Center for the Economics of Aging (MEA) at the Max Planck Institute for Social Law and Social Policy.
- H C W L Williams, 1977. "On the Formation of Travel Demand Models and Economic Evaluation Measures of User Benefit," Environment and Planning A, , vol. 9(3), pages 285-344, March.
- L. Randall Wray & Stephanie Bell, 2004. "Introduction," Chapters, in: Credit and State Theories of Money, chapter 1 Edward Elgar.
- Wen, Chieh-Hua & Koppelman, Frank S., 2001. "The generalized nested logit model," Transportation Research Part B: Methodological, Elsevier, vol. 35(7), pages 627-641, August.
- Swait, Joffre, 2001. "Choice set generation within the generalized extreme value family of discrete choice models," Transportation Research Part B: Methodological, Elsevier, vol. 35(7), pages 643-666, August.
- Small, Kenneth A, 1987. "A Discrete Choice Model for Ordered Alternatives," Econometrica, Econometric Society, vol. 55(2), pages 409-24, March.
- Daly, Andrew, 2001. "Alternative tree logit models: comments on a paper of Koppelman and Wen," Transportation Research Part B: Methodological, Elsevier, vol. 35(8), pages 717-724, September.
When requesting a correction, please mention this item's handle: RePEc:eee:transb:v:40:y:2006:i:4:p:285-305. See general information about how to correct material in RePEc.
If references are entirely missing, you can add them using this form.