On the representation of the nested logit model
Abstract: We give a two-line proof of a long-standing conjecture of Ben-Akiva and Lerman (1985) 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 Fr\'echet random variables coupled by a Gumbel copula.
Paper Prompts
Sign up for free to create and run prompts on this paper using GPT-5.
Top Community Prompts
Collections
Sign up for free to add this paper to one or more collections.