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Appears in Collections:Economics Conference Papers and Proceedings
Author(s): Boeri, Marco
Doherty, Edel
Campbell, Danny
Longo, Alberto
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Title: Accommodating for taste and variance heterogeneity in discrete choice
Citation: Boeri M, Doherty E, Campbell D & Longo A (2011) Accommodating for taste and variance heterogeneity in discrete choice In: International Choice Modelling Conference, International Choice Modelling Conference 2011. Second International Choice Modelling Conference 2011, 4.7.2011 - 6.7.2011, Leeds, UK.
Issue Date: 4-Jul-2011
Conference Name: Second International Choice Modelling Conference 2011
Conference Dates: 2011-07-04T00:00:00Z
Conference Location: Leeds, UK
Abstract: Understanding and accommodating heterogeneity in variance (also referred to as heteroscedasticity) and taste has become a major area of research within discrete choice analysis. Both scale and taste heterogeneity can be specified as continuous or discrete, the latter can be associated with socio economic characteristics (i.e. observed heterogeneity) or it can be derived probabilistically (i.e. unobserved heterogeneity). Within the context of the Mixed Logit models, unobserved heterogeneity can be represented by a continuous function, a discrete mixture or using a combination of both. This paper uses data from two recreational site choice studies (one elicited through stated preference methods and one through revealed preference methods) to compare various model specifications for accommodating both scale and preference heterogeneity. Results show that model fit, welfare estimates and choice predictions are sensitive to the manner in which both types of heterogeneity are accommodated.
Status: Publisher version
Rights: Papers presented at the Conference of Choice Modelling are licensed under a Creative Commons Attribution-Non-Commercial 2.0 UK: England & Wales License (

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