This chapter examines different models commonly used to model probabilistic choice, such as eg the choice of one type of transportation from among many choices available to the consumer. Section 1 discusses derivation and limitations of conditional logit models. Section 2 discusses probit models and Section 3 discusses the nested logit (generalized extreme value models), which address some of t...

Many researchers have used the conditional logit model to examine migration. One common objection to this model is that it carries the independence from irrelevant alternatives (IIA) assumption, which may be too restrictive. This study compares the conditional logit with models that partially relax (nested logit) or fully relax (mixed logit) the IIA assumption. We will begin to learn whether as...

Keywords: logit model, cross-nested model, GEV model, random utility, transportation demand Swiss Transport Research Conference – STRC 2003 – Monte Verita

In this study we assess the ability of the Marine Recreational Fishery Statistics Survey (MRFSS) to support single-species recreation demand models. We use the 2000 MRFSS southeast intercept data combined with the economic add-on. We determine that the MRFSS data will support only a few species-specific recreation demand models. Considering species of management interest in the southeast, we fo...

The current note summarizes the findings of our nested Logit analysis of the use of health care services in Cameroon. The objectives of that analysis were: (i) identify the determinants of the choice of health care providers in Cameroon, and (ii) determine the compensation to the poor to get them away from traditional/self healing. For that purpose a nested Logit model was built to account for ...

When valuing water resources using multiple site recreation data, it is typical to observe many corner solutions. We present as a benchmark a theoretical model of recreation choice when corners are present, and assess the degree to which several empirical specifications match the benchmark. As an illustration, we estimate and compare the repeated nested logit, a random parameters repeated neste...

This paper uses data on automobile purchases to compare two alternatives to the multinomial logit model. The results indicate that the nested logit model is likely to be superior to the more general Berry–Levinsohn–Pakes model for applications using aggregate-level data.  2000 Elsevier Science S.A. All rights reserved.

An exact formula for the expected compensating variation is derived for logit and nested-logit models with income effects. Intuition, examples, and an application are provided. The appendix contains a formal proof. The formula is applied to estimate the E[cv]s salmon anglers in Maine would associate with changes in catch rates at Maine and Canadian Rivers.