ACCOMMODATING FLEXIBLE SUBSTITUTION PATTERNS IN MULTI-DIMENSIONAL CHOICE MODELING: FORMULATION AND APPLICATION TO TRAVEL MDOE AND DEPARTURE TIME CHOICE

摘要

The nested logit model has been used extensively to model multi-dimensional choice situations. A drawback of the nested logit model is that it does not allow choice alternatives to share common unobserved attributes along all the dimensions characterizing the multidimensional choice context. This paper formulates a mixed multinomial logit structure that accommodates unobserved correlation across both dimensions in a two-dimensional choice context. The mixed multinomial logit structure is parsimonious in the number of parameters to be estimated and is also relatively easy to estimate using simulation methods.