Transcription of Discrete Choice Methods with Simulation
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Discrete Choice Methods with Simulation
Discrete Choice Methods withSimulationKenneth TrainUniversity of California, BerkeleyNational Economic Research AssociatesVersion dated March 8, 2002 Publisher: Cambridge University PressScheduled publication date: Autumn contact me with any corrections, comments,and suggestions, at McFaddenandin memory ofKenneth Train, copy is made available for use by individuals for their personalresearch and study. Permission is not granted to use any part of thiswork for any other purpose whatsoever without the written consent ofCambridge University Motivation .. Choice Probabilities and Integration .. Topics not covered .. Acouplenotes .. 12I Behavioral Models132 Derivation of Choice probabilities .. Specificmodels .. Only differences in utility matter .. The overall scale of utility is Sampleenumeration .. Forecasting .. 393 Choice probabilities.
Chapter 1 Introduction 1.1 Motivation When I wrote my first book, Qualitative Choice Analysis, in the mid 1980’s, the field had reached a critical juncture. The break-through concepts that defined the field had been made. The basic models — mainly logit and nested logit — had been introduced, and the sta-
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