Abstract
The problem of translating the theory of economic choice behavior into concrete models suitable for analyzing housing location is discussed. The analysis is based on the premise that the classical, economically rational consumer will choose a residential location by weighing the attributes of each available alternative and by selecting the alternative that maximizes utility. The assumption of independence in the commonly used multinomial logit model of choice is relaxed to permit a structure of perceived similarities among alternatives. In this analysis, choice is described by a multinomial logit model for aggregates of similar alternatives. Also discussed are methods for controlling the size of data collection and estimation tasks by sampling alternatives from the full set of alternatives. /Author/
Keywords
Multinomial logistic regressionChoice setIndependence of irrelevant alternativesIndependence (probability theory)Discrete choiceEconometricsSet (abstract data type)PremiseComputer scienceMixed logitSampling (signal processing)Multinomial distributionEstimationMultinomial probitOperations researchLogistic regressionEconomicsStatisticsEngineeringMathematicsMachine learning
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Publication Info
- Year
- 1978
- Type
- article
- Issue
- 673
- Citations
- 2369
- Access
- Closed
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Cite This
Daniel McFadden
(1978).
MODELING THE CHOICE OF RESIDENTIAL LOCATION.
Transportation Research Record Journal of the Transportation Research Board
(673)
.