Latent class models are a convenient and intuitive way to introduce taste heterogeneity in discrete choice models by relating attributes of the decision makers with unobserved behavioral classes, hence allowing for a more accurate market segmentation. Estimation and specification of latent class...

Many U.S. cities use vehicle emissions testing programs to improve air quality by identifying gross polluting vehicles and requiring their owners to make emissions-related repairs. All vehicles that meet certain criteria must pass an emissions test as part of the vehicle registration process....

In this paper, we discuss some of the issues that arise with the computation of the implied value of travel-time savings in the case of discrete choice models allowing for random taste heterogeneity. We specifically look at the case of models producing a non-zero probability of positive...

We investigate how customers respond to an opaque airline product offered by a European carrier. In this opaque product design, customers are randomly assigned to travel to one of approximately ten destinations; however, for a fee they may exclude one or more destinations from the choice set (or...