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A class of RUM choice models that includes the model in which the utility has logistic distributed errors
Institution:1. Department of Computer Science and Engineering, University of Colorado Denver, Denver, CO 80217, USA;2. Dipartimento di Informatica, Università degli Studi di Salerno, Fisciano, 84084 Salerno, Italy;3. Department of Computer Science, University of Liverpool, Liverpool L69 3BX, United Kingdom;1. Dept. of Information Engineering, Graduate School of Engineering, Hiroshima University, 1-4-1 Kagamiyama, Higashi-Hiroshima, Hiroshima, 739-8527, Japan;2. College of Information Science and Engineering, Ritsumeikan University, 1-1-1 Noji higashi, Kusatsu, Shiga, 525-8577, Japan;3. Graduate School of ISEE, Kyushu University, 744 Motooka, Nishi-ku, Fukuoka, Fukuoka, 819-0395, Japan
Abstract:A class of random utility maximization (RUM) models is introduced. For these RUM models the utility errors are the sum of two independent random variables, where one of them follows a Gumbel distribution. For this class of RUM models an integral representation of the choice probability generating function has been derived which is substantially different from the usual integral representation arising from the RUM theory. Four types of models belonging to the class are presented. Thanks to the new integral representation, a closed-form expression for the choice probability generating function for these four models may be easily obtained. The resulting choice probabilities are fairly manageable and this fact makes the proposed models an interesting alternative to the logit model. The proposed models have been applied to two samples of interurban trips in Japan and some of them yield a better fit than the logit model. Finally, the concavity of the log-likelihood of the proposed models with respect to the utility coefficients is also analyzed.
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