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On the representation of the nested logit model
Published 20 Jul 2019 in math.ST, math.PR, and stat.TH | (1907.08766v6)
Abstract: We give a two-line proof of a long-standing conjecture of Ben-Akiva and Lerman (1985) regarding the random utility representation of the nested logit model, thus providing a renewed and straightforward textbook treatment of that model. As an application, we provide a closed-form formula for the correlation between two Fr\'echet random variables coupled by a Gumbel copula.
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