Choice probability generating functions

Mogens Fosgerau, Daniel McFadden, Michel Bierlaire
2013 Journal of Choice Modeling  
This paper establishes that every random utility discrete choice model (RUM) has a representation that can be characterized by a choice-probability generating function (CPGF) with specic properties, and that every function with these specic properties is consistent with a RUM. The choice probabilities from the RUM are obtained from the gradient of the CPGF. Mixtures of RUM are characterized by logarithmic mixtures of their associated CPGF. The paper relates CPGF to multivariate extreme value
more » ... te extreme value distributions, and reviews and extends methods for constructing generating functions for applications. The choice probabilities of any ARUM may be approximated by a crossnested logit model. The results for ARUM are extended to competing risk survival models.
doi:10.1016/j.jocm.2013.05.002 fatcat:t65xothvlfc5fnq3yk3zemde7i