Review of error structure extension of discrete choice models in travel mode choice
Huapu Lu
Abstract
Huapu Lu
Abstract
Multinomial logit models are based on the assumption that error terms are independently identically distributed over alternatives,which causes the independence of irrelevant alternatives in multinomial logit models.This paper relaxes the rigid assumption of multinomial logit models,and systematically reviews the extensions of non-independent identical error structure,independent non-identical error structure and non-independent non-identical error structure aiming to develop more flexible error structure to reflect the heteroscedasticity and correlation among the random utility of alternatives.
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Multinomial logit models are based on the assumption that error terms are independently identically distributed over alternatives,which causes the independence of irrelevant alternatives in multinomial logit models.This paper relaxes the rigid assumption of multinomial logit models,and systematically reviews the extensions of non-independent identical error structure,independent non-identical error structure and non-independent non-identical error structure aiming to develop more flexible error structure to reflect the heteroscedasticity and correlation among the random utility of alternatives.
Key concepts: Multinomial logistic regression, Independence (probability theory), Multinomial probit, Econometrics, Extension (predicate logic), Heteroscedasticity, Independence of irrelevant alternatives, Discrete choice