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On the Representation of the Nested Logit Model

Author

Listed:
  • Alfred Galichon

    (ECON - Département d'économie (Sciences Po) - Sciences Po - Sciences Po - CNRS - Centre National de la Recherche Scientifique, NYU - New York University [New York] - NYU - NYU System)

Abstract

In this paper, we give a two-line proof of a long-standing conjecture of Ben-Akiva in his 1973 PhD thesis regarding the random utility representation of the nested logit model, thus providing a renewed and straightforward textbook treatment of that model. As an application, we provide a closed-form formula for the correlation between two Fréchet random variables coupled by a Gumbel copula.

Suggested Citation

  • Alfred Galichon, 2022. "On the Representation of the Nested Logit Model," SciencePo Working papers Main hal-03893069, HAL.
  • Handle: RePEc:hal:spmain:hal-03893069
    DOI: 10.1017/S026646662000047X
    Note: View the original document on HAL open archive server: https://hal-sciencespo.archives-ouvertes.fr/hal-03893069
    as

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