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A systematic comparison of continuous and discrete mixture models

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  • Hess, S.
  • Bierlaire, Michel
  • Polak, J.W.

Abstract

Modellers are increasingly relying on the use of continuous random coefficients models, such as Mixed Logit, for the representation of variations in tastes across individuals. In this paper, we provide an in-depth comparison of the performance of the Mixed Logit model with that of its far less commonly used discrete mixture counterpart, making use of a combination of real and simulated datasets. The results not only show significant computational advantages for the discrete mixture approach, but also highlight greater flexibility, and show that, across a host of scenarios, the discrete mixture models are able to offer comparable or indeed superior model performance.

Suggested Citation

  • Hess, S. & Bierlaire, Michel & Polak, J.W., 2007. "A systematic comparison of continuous and discrete mixture models," European Transport \ Trasporti Europei, ISTIEE, Institute for the Study of Transport within the European Economic Integration, issue 37, pages 35-61.
  • Handle: RePEc:sot:journl:y:2007:i:37:p:35-61
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    File URL: http://hdl.handle.net/10077/5957
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    References listed on IDEAS

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    1. Fosgerau, Mogens & Bierlaire, Michel, 2007. "Circumventing the problem of the scale: discrete choice models with multiplicative error terms," MPRA Paper 3901, University Library of Munich, Germany.
    2. Fosgerau, Mogens, 2006. "Investigating the distribution of the value of travel time savings," Transportation Research Part B: Methodological, Elsevier, vol. 40(8), pages 688-707, September.
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    Cited by:

    1. Rommel, Jens & Sagebiel, Julian & Müller, Jakob R., 2016. "Quality uncertainty and the market for renewable energy: Evidence from German consumers," Renewable Energy, Elsevier, vol. 94(C), pages 106-113.
    2. Meginnis, Keila & Campbell, Danny, 2017. "Students’ preferences for attributes of postgraduate economics modules: Evidence from a multi-profile best-worst scaling survey," International Review of Economics Education, Elsevier, vol. 24(C), pages 18-27.
    3. Stephane Hess, 2014. "Latent class structures: taste heterogeneity and beyond," Chapters,in: Handbook of Choice Modelling, chapter 14, pages 311-330 Edward Elgar Publishing.
    4. repec:eee:eejocm:v:24:y:2017:i:c:p:36-50 is not listed on IDEAS
    5. Edel Doherty & Danny Campbell & Stephen Hynes, 2013. "Models of Site-choice for Walks in Rural Ireland: Exploring Cost Heterogeneity," Journal of Agricultural Economics, Wiley Blackwell, vol. 64(2), pages 446-466, June.
    6. Yuan, Yuan & You, Wen & Boyle, Kevin J., 2015. "A guide to heterogeneity features captured by parametric and nonparametric mixing distributions for the mixed logit model," 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California 205733, Agricultural and Applied Economics Association;Western Agricultural Economics Association.
    7. Erlend Dancke Sandorf & Danny Campbell & Nick Hanley, 2015. "Disentangling the Influence of Knowledge on Processing Strategies in Choice Modelling," Discussion Papers in Environment and Development Economics 2015-02, University of St. Andrews, School of Geography and Sustainable Development.
    8. Sagebiel, Julian, 2017. "Preference heterogeneity in energy discrete choice experiments: A review on methods for model selection," Renewable and Sustainable Energy Reviews, Elsevier, vol. 69(C), pages 804-811.
    9. Stephane Hess & Denis Bolduc & John Polak, 2010. "Random covariance heterogeneity in discrete choice models," Transportation, Springer, vol. 37(3), pages 391-411, May.
    10. Doherty, Edel & Campbell, Danny & Hynes, Stephen, 2012. "Exploring cost heterogeneity in recreational demand," Working Papers 148832, Socio-Economic Marine Research Unit, National University of Ireland, Galway.
    11. Jensen, Jørgen Dejgaard & Mørkbak, Morten Raun & Nordström, Jonas, 2012. "Economic Costs and Benefits of Promoting Healthy Takeaway Meals at Workplace Canteens," Journal of Benefit-Cost Analysis, Cambridge University Press, vol. 3(04), pages 1-27, December.
    12. Pfarr, Christian & Schmid, Andreas & Mørkbak, Morten Raun, 2015. "Latent characteristics and preferences for income redistribution," Annual Conference 2015 (Muenster): Economic Development - Theory and Policy 113001, Verein für Socialpolitik / German Economic Association.
    13. José Grisolía & Kenneth Willis, 2012. "A latent class model of theatre demand," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 36(2), pages 113-139, May.
    14. Varela, Elsa & Jacobsen, Jette Bredahl & Soliño, Mario, 2014. "Understanding the heterogeneity of social preferences for fire prevention management," Ecological Economics, Elsevier, vol. 106(C), pages 91-104.
    15. Andrew Daly & Stephane Hess & Kenneth Train, 2012. "Assuring finite moments for willingness to pay in random coefficient models," Transportation, Springer, vol. 39(1), pages 19-31, January.
    16. Pfarr, Christian & Schmid, Andreas & Mørkbak, Morten Raun, 2014. "Identifying latent interest-groups: An analysis of heterogeneous preferences for income-redistribution," MPRA Paper 58823, University Library of Munich, Germany.

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