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Analysis Of Discrete Choice Probit Models With Structured Correlation Matrices, Bhaskara Ravi
Analysis Of Discrete Choice Probit Models With Structured Correlation Matrices, Bhaskara Ravi
Mathematics & Statistics Theses & Dissertations
Discrete choice models are very popular in Economics and the conditional logit model is the most widely used model to analyze consumer choice behavior, which was introduced in a seminal paper by McFadden (1974). This model is based on the assumption that the unobserved factors, which determine the consumer choices, are independent and follow a Gumbel distribution, widely known as the Independence of irrelevant Alternatives (IIA) assumption. Alternate models that relax IIA assumption are the Generalized Extreme Value (GEV) models, which allow dependency between unobserved factors. However, GEV models do not incorporate all dependency patterns, other choice behaviors such as …