In this paper, we give a two-line proof of a long-standing conjecture of Ben-Akiva in his 1973 PhD thesis regarding the random utility representation of the nested logit model, thus providing a renewed and straightforward textbook treatment of that model. As an application, we provide a closed-form formula for the correlation between two Fréchet random variables coupled by a Gumbel copula.
|Original language||English (US)|
|Number of pages||11|
|State||Published - Apr 11 2022|
ASJC Scopus subject areas
- Social Sciences (miscellaneous)
- Economics and Econometrics