Estimation with the nested logit model: specifications and software particularities

The Generalized Nested Logit Model

The generalized nested logit model is a new member of the generalized extreme value family of models. The GNL provides a higher degree of flexibility in the estimation of substitution or cross-elasticity between pairs of alternatives than previously developed generalized extreme value models. The generalized nested logit model includes the paired combinatorial logit and cross-nested logit model...

On Rank-Ordered Nested Multinomial Logit Model and D-Optimal Design for this Model

In contrast to the classical discrete choice experiment, the respondent in a rank-order discrete choice experiment, is asked to rank a number of alternatives instead of the preferred one. In this paper, we study the information matrix of a rank order nested multinomial logit model (RO.NMNL) and introduce local D-optimality criterion, then we obtain Locally D-optimal design for RO.NMNL models in...

A Nested Logit Model of Coffee Purchase

On a shopping trip to a supermarket a customer may purchase a product in a given category and, if so, buys a particular brand. A previous paper by the authors models the brand choice part of this process. A multinomial logit model describes the selection of brand and size given that the customer makes a category purchase. Explanatory variables include store actions, such as price and promotion,...

Predicting Currency Crises with a Nested Logit Model

This paper is the first to apply a nested logit model to measure the probabilities of speculative attacks and the probabilities of successful defenses by the central banks. This model allows us to predict not only the probability of speculative attacks but also the probability of successful defenses given attacks. Also, it provides a framework to analyze the degree to which different factors af...

Online Supplement Constrained Assortment Optimization for the Nested Logit Model