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Journal Articles Econometric Theory Year : 2022

On the Representation of the Nested Logit Model

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.

Dates and versions

hal-03893069 , version 1 (10-12-2022)

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Attribution - NonCommercial - NoDerivatives

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Alfred Galichon. On the Representation of the Nested Logit Model. Econometric Theory, 2022, 38 (2), pp.370-380. ⟨10.1017/S026646662000047X⟩. ⟨hal-03893069⟩
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