IDEAS home Printed from https://ideas.repec.org/a/inm/ortrsc/v27y1993i4p395-400.html
   My bibliography  Save this article

Technical Note—Two Properties of the Nested Logit Model

Author

Listed:
  • Carlos F. Daganzo

    (Institute of Transportation Studies, University of California, Berkeley, California 94720)

  • Michael Kusnic

    (Marketing and Product Planning Staff, General Motors Corporation, Detroit, Michigan 48202)

Abstract

This paper presents simple formulae for the utility covariances of the nested logit (NL) model, and based on these defines a “scaled tree” that can be used as an aid for the interpretation of estimation results. The paper also shows that the full information log-likelihood function of linear-in-the-parameters NL models is concave in the utility parameters. Thus, conditional on the scaling parameters, full information maximum likelihood (FIML) searches cannot get trapped in local maxima.

Suggested Citation

  • Carlos F. Daganzo & Michael Kusnic, 1993. "Technical Note—Two Properties of the Nested Logit Model," Transportation Science, INFORMS, vol. 27(4), pages 395-400, November.
    • Handle: RePEc:inm:ortrsc:v:27:y:1993:i:4:p:395-400
    DOI: 10.1287/trsc.27.4.395
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.1287/trsc.27.4.395
    Download Restriction: no
    File URL: https://libkey.io/10.1287/trsc.27.4.395?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. R.K. Blamey & J.W. Bennett & J.J. Louviere & M.D. Morrison & J.C. Rolfe, 2002. "Attribute Causality in Environmental Choice Modelling," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 23(2), pages 167-186, October.
    2. Aydın Alptekinoğlu & John H. Semple, 2021. "Heteroscedastic Exponomial Choice," Operations Research, INFORMS, vol. 69(3), pages 841-858, May.
    3. Youssef M. Aboutaleb & Moshe Ben-Akiva & Patrick Jaillet, 2020. "Learning Structure in Nested Logit Models," Papers 2008.08048, arXiv.org.
    4. José Luis Espinosa-Aranda & Ricardo García-Ródenas & María Luz López-García & Eusebio Angulo, 2018. "Constrained nested logit model: formulation and estimation," Transportation, Springer, vol. 45(5), pages 1523-1557, September.
    5. Vinit Kumar Mishra & Karthik Natarajan & Dhanesh Padmanabhan & Chung-Piaw Teo & Xiaobo Li, 2014. "On Theoretical and Empirical Aspects of Marginal Distribution Choice Models," Management Science, INFORMS, vol. 60(6), pages 1511-1531, June.
    6. Heng Zhang & Paat Rusmevichientong & Huseyin Topaloglu, 2020. "Assortment Optimization Under the Paired Combinatorial Logit Model," Operations Research, INFORMS, vol. 68(3), pages 741-761, May.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:inm:ortrsc:v:27:y:1993:i:4:p:395-400. See general information about how to correct material in RePEc.

    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.

    We have no bibliographic references for this item. You can help adding them by using 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Asher (email available below). General contact details of provider: https://edirc.repec.org/data/inforea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.