IDEAS home Printed from https://ideas.repec.org/p/zbw/sfb475/200232.html
   My bibliography  Save this paper

A multiplicative concept for random utility

Author

Listed:
  • Brilon, Werner
  • Dette, Holger

Abstract

The paper introduces a new type of random utility model. Here the random term is formulated as a multiplicative factor to express the random effects of the utility together with deterministic utility aspects. Some arguments are given why this multiplicative approach is preferable over the additive solution which is more common in transportation planning. It is shown using the Weibull distribution, that this concept can be transformed into rather simple equations for the probability of the selection of different modes by individual travellers. More mathematical derivations show that the new concept has close relations to the Logit model. It can, however, provide one more degree of freedom and thus, better flexibility to adjust the model to reality. Also with other assumptions for the random utility term, like the lognormal distribution, this basic concept can be developed. For the model, a method of parameter calibration based on individual traveller’s decisions by maximum likelihood has been developed. The whole concept is demonstrated with real world data to demonstrate its usability.

Suggested Citation

  • Brilon, Werner & Dette, Holger, 2002. "A multiplicative concept for random utility," Technical Reports 2002,32, Technische Universität Dortmund, Sonderforschungsbereich 475: Komplexitätsreduktion in multivariaten Datenstrukturen.
    • Handle: RePEc:zbw:sfb475:200232
    as

    Download full text from publisher

    File URL: https://www.econstor.eu/bitstream/10419/77349/2/2002-32.pdf
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Ngan Ha Duong & Tien Thanh Dam & Thuy Anh Ta & Tien Mai, 2022. "Joint Location and Cost Planning in Maximum Capture Facility Location under Multiplicative Random Utility Maximization," Papers 2205.07345, arXiv.org, revised Feb 2023.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:zbw:sfb475:200232. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ZBW - Leibniz Information Centre for Economics (email available below). General contact details of provider: https://edirc.repec.org/data/isdorde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.