This paper proposes a new random utility model characterised by a cumulative distribution function (cdf) obtained as a finite mixture of different cdfs. This entails that choice probabilities, covariances and elasticities of this model are also a finite mixture of choice probabilities, covariances and elasticities of the mixing models. As a consequence, by mixing nested logit cdfs, a model is generated with closed-form expressions for choice probabilities, covariances and elasticities and with, potentially, a very flexible correlation pattern. Importantly, the closed-form covariance expression opens up interesting application possibilities in some special choice contexts, like route choice, where prior expectations in terms of the covariance matrix can be formulated.
A new random utility model with flexible correlation pattern and closed-form covariance expression: The CoRUM / Papola, Andrea. - In: TRANSPORTATION RESEARCH PART B-METHODOLOGICAL. - ISSN 0191-2615. - 94:(2016), pp. 80-96. [10.1016/j.trb.2016.09.008]
A new random utility model with flexible correlation pattern and closed-form covariance expression: The CoRUM
PAPOLA, ANDREA
2016
Abstract
This paper proposes a new random utility model characterised by a cumulative distribution function (cdf) obtained as a finite mixture of different cdfs. This entails that choice probabilities, covariances and elasticities of this model are also a finite mixture of choice probabilities, covariances and elasticities of the mixing models. As a consequence, by mixing nested logit cdfs, a model is generated with closed-form expressions for choice probabilities, covariances and elasticities and with, potentially, a very flexible correlation pattern. Importantly, the closed-form covariance expression opens up interesting application possibilities in some special choice contexts, like route choice, where prior expectations in terms of the covariance matrix can be formulated.I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.