Working Paper: NBER ID: w17970
Authors: Mogens Fosgerau; Daniel L. McFadden; Michel Bierlaire
Abstract: This paper considers discrete choice, with choice probabilities coming from maximization of preferences from a random utility field perturbed by additive location shifters (ARUM). Any ARUM can be characterized by a choice-probability generating function (CPGF) whose gradient gives the choice probabilities, and every CPGF is consistent with an ARUM. We relate CPGF to multivariate extreme value distributions, and review and extend methods for constructing CPGF for applications.
Keywords: additive random utility; discrete choice; choice probability generating functions
JEL Codes: C25; D11
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| choice probability generating function (CPGF) (C25) | choice probabilities (C25) |
| additive random utility model (ARUM) (D11) | choice probabilities (C25) |
| random utility model (RUM) (D81) | competing risk survival models (C41) |