ON THE COMPATIBILITY OF NESTED LOGIT-MODELS WITH UTILITY MAXIMIZATION- A COMMENT

Authors
KONING RH RIDDER G
Citation
Rh. Koning et G. Ridder, ON THE COMPATIBILITY OF NESTED LOGIT-MODELS WITH UTILITY MAXIMIZATION- A COMMENT, Journal of econometrics, 63(2), 1994, pp. 389-396
Citations number
6
Categorie Soggetti
Social Sciences, Mathematical Methods",Economics,"Mathematical, Methods, Social Sciences
Journal title
Journal of econometrics → ACNP
ISSN journal
03044076
Volume
63
Issue
2
Year of publication
1994
Pages
389 - 396
Database
ISI
SICI code
0304-4076(1994)63:2<389:OTCONL>2.0.ZU;2-N
Abstract
Borsch-Supan (1990) gives a sufficient condition for the compatibility of choice probabilities with stochastic utility maximization on an in terval. We show that the necessary and sufficient conditions for globa l compatibility as derived by Daly and Zachary (1979) and McFadden (19 81) also apply if the nonrandom components are restricted to a closed interval. Hence, this case gives no further restrictions on the choice probabilities.