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

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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Year of publication:	1981
Authors:	Hensher, David A.
Published in:	Transportation Research Part B: Methodological. - Elsevier, ISSN 0191-2615. - Vol. 15.1981, 6, p. 407-410
Publisher:	Elsevier

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Type of publication:	Article
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005052544