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Integrating a Pareto-Distributed Scale into the Mixed Logit Model: A Mathematical Concept.
- Source :
-
Mathematics (2227-7390) . Dec2023, Vol. 11 Issue 23, p4727. 22p. - Publication Year :
- 2023
-
Abstract
- A generalized multinomial logit (G-MNL) model is proposed to alleviate the four challenges inherent to the conditional logit model, including (1) simultaneous unidentifiability, (2) the immediacy of decision-making, (3) the homogeneity of preferences in unobservable variables, and (4) the independence of irrelevant alternatives. However, the G-MNL model has some restrictions that are caused by the assumed logit scale of the lognormal distribution used in the G-MNL model. We propose a mixed logit with integrated Pareto-distributed scale (MIXL-iPS) model to address the restriction of the G-MNL model by introducing a logit scale in accordance with the Pareto distribution type I with an expected value of 1. We have clarified the mathematical properties and examined the distributional properties of the novel MIXL-iPS model. The results suggest that the MIXL-iPS model is a model in which the instability in the estimation of the G-MNL model is modified. Moreover, the apparent preference parameter was confirmed to have a skewed distribution in general in the MIXL-iPS model. In addition, we confirm that in the MIXL-iPS model, bounded rationality is reasonably well represented, as many individuals have below-average choice consistency. [ABSTRACT FROM AUTHOR]
Details
- Language :
- English
- ISSN :
- 22277390
- Volume :
- 11
- Issue :
- 23
- Database :
- Academic Search Index
- Journal :
- Mathematics (2227-7390)
- Publication Type :
- Academic Journal
- Accession number :
- 174113342
- Full Text :
- https://doi.org/10.3390/math11234727