Invariance of expected utilities in logit models

Alex Anas; Cheng Min Feng

doi:10.1016/0165-1765(88)90217-0

Invariance of expected utilities in logit models

Alex Anas
, Cheng Min Feng

Economics

National Yang Ming Chiao Tung University

Research output: Contribution to journal › Article › peer-review

18 Scopus citations

Abstract

An unnoticed and restrictive property of the logit model is proved: the expected utility (or expected utility change) conditional on having selected an alternative i is invariant over all alternatives in the choice set. This limits the use of logit in situations where expected utilities should realisticly vary by choice made. The probit model is not subject to this restriction.

Original language	English
Pages (from-to)	41-45
Number of pages	5
Journal	Economics Letters
Volume	27
Issue number	1
DOIs	https://doi.org/10.1016/0165-1765(88)90217-0
State	Published - 1988

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abstract = "An unnoticed and restrictive property of the logit model is proved: the expected utility (or expected utility change) conditional on having selected an alternative i is invariant over all alternatives in the choice set. This limits the use of logit in situations where expected utilities should realisticly vary by choice made. The probit model is not subject to this restriction.",

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AB - An unnoticed and restrictive property of the logit model is proved: the expected utility (or expected utility change) conditional on having selected an alternative i is invariant over all alternatives in the choice set. This limits the use of logit in situations where expected utilities should realisticly vary by choice made. The probit model is not subject to this restriction.

UR - https://www.scopus.com/pages/publications/38249030805

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DO - 10.1016/0165-1765(88)90217-0

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SN - 0165-1765

VL - 27

SP - 41

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JO - Economics Letters

JF - Economics Letters

IS - 1

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Invariance of expected utilities in logit models

Abstract

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