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A practical concern about the relevance of alternative-specific constants for new alternatives in simple logit models

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  • Hensher, David A.

Abstract

When a "new" alternative is introduced, post-estimation, into a logit model, analysis initially exclude an ASC or occasionally assume a correspondence with an existing alternative. Using a recent data set for mode and route choice, the paper highlights the forecasting implications of ignoring the ASC in the utility expression of a "new" alternative, and how sensitive the market shares are to the inclusion/ exclusion of the ASC.

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  • Hensher, David A., 1981. "A practical concern about the relevance of alternative-specific constants for new alternatives in simple logit models," Transportation Research Part B: Methodological, Elsevier, vol. 15(6), pages 407-410, December.
    • Handle: RePEc:eee:transb:v:15:y:1981:i:6:p:407-410
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    Cited by:

    1. W C Halperin & G D Richardson & N Gale & C M Costanzo, 1984. "A Generalized Procedure for Comparing Models of Spatial Choice," Environment and Planning A, , vol. 16(10), pages 1289-1301, October.

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