ON the REPRESENTATION of the NESTED LOGIT MODEL

Alfred Galichon

    Research output: Contribution to journalReview articlepeer-review

    Abstract

    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 languageEnglish (US)
    JournalEconometric Theory
    DOIs
    StateAccepted/In press - 2020

    ASJC Scopus subject areas

    • Social Sciences (miscellaneous)
    • Economics and Econometrics

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