A generalized logit formulation of individual choice
Name
MIT-EL-79-010WP-05734197.pdf
Size
1.56 MB
Format
Adobe PDF
Checksum (MD5)
e66d5bd6b42c3d67d9f00601f63a3ee6
Author(s)
Hartman, Raymond S.
Date Issued
February 1979
Publisher
MIT Energy Laboratory
Series/Report no.
MIT-EL
79-010WP
Abstract
Probability models of individual choice consist of two
components: a formulation of random utility and the stochastic
specification of that utility. Usually separable direct random
utility is assumed. With Weibull error terms, logit analysis
results. However, logit analysis suffers from the "assumed"
"independence of irrelevant alternatives". It is the contention
of this paper that these difficulties result from the usual
restrictive utility formulation. A more general indirect
random utility formulation is introduced. Estimates of the
resulting generalized logit and the more restrictive logit models
are presented. Hypothesis testing is reported which rejects the
restrictive utility formulations which dominate the literature.
Subjects
Choice (Psychology) |x Mathematical models.
Decision making |x Mathematical models.
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