ON THE COMPATIBILITY OF NESTED LOGIT-MODELS WITH UTILITY MAXIMIZATION - A COMMENT

RH KONING; G RIDDER

ON THE COMPATIBILITY OF NESTED LOGIT-MODELS WITH UTILITY MAXIMIZATION - A COMMENT

RH KONING^*, G RIDDER

^*Bijbehorende auteur voor dit werk

Rijksuniversiteit Groningen

Onderzoeksoutput › Academic › peer review

10 Citaten (Scopus)

Samenvatting

Borsch-Supan (1990) gives a sufficient condition for the compatibility of choice probabilities with stochastic utility maximization on an interval. We show that the necessary and sufficient conditions for global compatibility as derived by Daly and Zachary (1979) and McFadden (1981) also apply if the nonrandom components are restricted to a closed interval. Hence, this case gives no further restrictions on the choice probabilities.

Originele taal-2	English
Pagina's (van-tot)	389-396
Aantal pagina's	8
Tijdschrift	Journal of Econometrics
Volume	63
Nummer van het tijdschrift	2
Status	Published - aug.-1994

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ON THE COMPATIBILITY OF NESTED LOGIT-MODELS WITH UTILITY MAXIMIZATION - A COMMENT
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abstract = "Borsch-Supan (1990) gives a sufficient condition for the compatibility of choice probabilities with stochastic utility maximization on an interval. We show that the necessary and sufficient conditions for global compatibility as derived by Daly and Zachary (1979) and McFadden (1981) also apply if the nonrandom components are restricted to a closed interval. Hence, this case gives no further restrictions on the choice probabilities.",

keywords = "DISCRETE CHOICE, STOCHASTIC UTILITY MAXIMIZATION, RANDOM UTILITY MODELS",

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T1 - ON THE COMPATIBILITY OF NESTED LOGIT-MODELS WITH UTILITY MAXIMIZATION - A COMMENT

AU - KONING, RH

AU - RIDDER, G

PY - 1994/8

Y1 - 1994/8

N2 - Borsch-Supan (1990) gives a sufficient condition for the compatibility of choice probabilities with stochastic utility maximization on an interval. We show that the necessary and sufficient conditions for global compatibility as derived by Daly and Zachary (1979) and McFadden (1981) also apply if the nonrandom components are restricted to a closed interval. Hence, this case gives no further restrictions on the choice probabilities.

AB - Borsch-Supan (1990) gives a sufficient condition for the compatibility of choice probabilities with stochastic utility maximization on an interval. We show that the necessary and sufficient conditions for global compatibility as derived by Daly and Zachary (1979) and McFadden (1981) also apply if the nonrandom components are restricted to a closed interval. Hence, this case gives no further restrictions on the choice probabilities.

KW - DISCRETE CHOICE

KW - STOCHASTIC UTILITY MAXIMIZATION

KW - RANDOM UTILITY MODELS

M3 - Article

SN - 0304-4076

VL - 63

SP - 389

EP - 396

JO - Journal of Econometrics

JF - Journal of Econometrics

IS - 2

ER -