Choice probability generating functions

TY - JOUR

T1 - Choice probability generating functions

AU - Fosgerau, Mogens

AU - McFadden, Daniel

AU - Bierlaire, Michel

PY - 2013

Y1 - 2013

N2 - This paper considers discrete choice, with choice probabilities coming from maximization of preferences from a random utility field perturbed by additive location shifters (ARUM). Any ARUM can be characterized by a choice-probability generating function (CPGF) whose gradient gives the choice probabilities, and every CPGF is consistent with an ARUM. We relate CPGF to multivariate extreme value distributions, and review and extend methods for constructing CPGF for applications. The choice probabilities of any ARUM may be approximated by a cross-nested logit model. The results for ARUM are extended to competing risk survival models.

AB - This paper considers discrete choice, with choice probabilities coming from maximization of preferences from a random utility field perturbed by additive location shifters (ARUM). Any ARUM can be characterized by a choice-probability generating function (CPGF) whose gradient gives the choice probabilities, and every CPGF is consistent with an ARUM. We relate CPGF to multivariate extreme value distributions, and review and extend methods for constructing CPGF for applications. The choice probabilities of any ARUM may be approximated by a cross-nested logit model. The results for ARUM are extended to competing risk survival models.

KW - Additive random utility

KW - Choice probability generating functions

KW - Discrete choice

UR - http://www.scopus.com/inward/record.url?scp=84881170683&partnerID=8YFLogxK

U2 - 10.1016/j.jocm.2013.05.002

DO - 10.1016/j.jocm.2013.05.002

M3 - Journal article

AN - SCOPUS:84881170683

SN - 1755-5345

VL - 8

SP - 1

EP - 18

JO - Journal of Choice Modelling

JF - Journal of Choice Modelling

ER -