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Volume 35 Issue 12
Dec.  2009
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Journal of Beijing University of Aeronautics and Astronautics  > 2009  >  35(12): 1443-1445.
Wang Guangjun, Fang Jiancheng. High precision interpolation algorithm for star pattern[J]. Journal of Beijing University of Aeronautics and Astronautics, 2005, 31(05): 566-569. (in Chinese)
Citation: Li Huamin, Huang Haijun, Wang Huiwenet al. Multinomial Logit model based on Gumbel Copula[J]. Journal of Beijing University of Aeronautics and Astronautics, 2009, 35(12): 1443-1445. (in Chinese)
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Multinomial Logit model based on Gumbel Copula

  • School of Economics and Management, Beijing University of Aeronautics and Astronautics, Beijing 100191, China

  • Received Date: 21 Nov 2008
  • Publish Date: 31 Dec 2009
    Abstract
  • For the IID(identically & independently distributed) condition of the multinomial Logit model, which requires all random terms existing in the utilities of alternatives to be independent each other, a discrete choice model was proposed, based on the Copula function which can be used to derive the joint probability distribution of multi-random variables. The IID condition is weakened and the distribution of the difference between every two random terms is obtained using the Gumbel Copula function-s property. It is found that this distribution still follows the Logistic type but the difference must be multiplied by a parameter which can be estimated by the likelihood method from survey data. This result is then extended and employed in the discrete choice problem with more than two alternatives. The probability of choosing a specific alternative is rigorously formulated. The work surmounts the difficulty of applying the multinomial Logit model.

     

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