2011
DOI: 10.1080/17442508.2011.619660
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Some aspects of random utility, extreme value theory and multinomial logit models

Abstract: In this paper we give a survey on some basic ideas related to random utility, extreme value theory and multinomial logit models. These ideas are well known within the field of spatial economics, but do not appear to be common knowledge to researchers in probability theory. The purpose of the paper is to try to bridge this gap.

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Cited by 6 publications
(2 citation statements)
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“…The predictions generated by the discrete choice model reflect the same property of human decision-making that we explained in the main text: choice attributes matter more when they are close-to-pivotal than when most factors are stacked in favor of one option or another. Consequently, the parametric assumptions that go into discrete choice models tend to provide an excellent fit to the data (for studies of this in the consumer choice literature, see Andersson and Uboe 2010;Larsen et al 2012). Graham and Svolik (2020) show a strong correspondence between the model's predictions and a non-parametric analysis of candidate choice scenarios.…”
Section: The Modelmentioning
confidence: 99%
“…The predictions generated by the discrete choice model reflect the same property of human decision-making that we explained in the main text: choice attributes matter more when they are close-to-pivotal than when most factors are stacked in favor of one option or another. Consequently, the parametric assumptions that go into discrete choice models tend to provide an excellent fit to the data (for studies of this in the consumer choice literature, see Andersson and Uboe 2010;Larsen et al 2012). Graham and Svolik (2020) show a strong correspondence between the model's predictions and a non-parametric analysis of candidate choice scenarios.…”
Section: The Modelmentioning
confidence: 99%
“…Following [59,83,84], the gravity model can be derived from a random utility maximization (RUM) model. The RUM approach aims at modeling the choices of individuals among discrete sets of alternatives, based on choice probabilities and utility functions that contain some random elements.…”
Section: The Gravity Modelmentioning
confidence: 99%