Abstract
Discrete choice models are a tool which is shared by a large variety of scientific areas, and for this reason, different specifications have been developed. Of all these specifications, the so-called multinomial logit model (McFadden, 1974) is the one that has been used most to analyze situations in which there are multiple choice alternatives, specifically in retail studies (Arentze y Timmermans, 2001). The multinomial logit model has a strong theoretical base and is also easy to apply. However, a potential limitation of the studies that use this specification is the fact that consumer heterogeneity is not taken into account (Severin, Louviere and Finn, 2001). In this paper we present the results of a random effects model. The distribution of the heterogeneity is assumed to be unknown, and it is approximated through a piecewise constant function, as was proposed originally in Heckman and Singer (1984).
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© 2002 Springer-Verlag Berlin Heidelberg
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Rodríguez-del-Bosque, I., Suárez-Vázquez, A., Moral-Arce, I., Rodríguez-Poo, J. (2002). Unobserved Heterogeneity in Store Choice Models. In: Härdle, W., Rönz, B. (eds) Compstat. Physica, Heidelberg. https://doi.org/10.1007/978-3-642-57489-4_95
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DOI: https://doi.org/10.1007/978-3-642-57489-4_95
Publisher Name: Physica, Heidelberg
Print ISBN: 978-3-7908-1517-7
Online ISBN: 978-3-642-57489-4
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