In this study, we use a first-order spatial autoregressive formulation to model the correlation among the errors of a linear demand equation that explains origin-destination flows. The process splits the error term for each observation into a weighted sum of all the other errors and a purely...

The Multinomial Probit (MNP) formulation provides a very general framework to allow for inter-dependent alternatives in discrete choice analysis. Up until recently, its use was rather limited, mainly because of the computational difficulties associated with the evaluation of the choice...

In discrete choice analysis, the multinational probit (MNP) provides the most flexible framework to allow for general interdependencies among the alternatives. These interdependencies are usually modeled through the correlation structure of the error term. This framework suffers from two serious...