Revealing additional dimensions of preference heterogeneity in a latent class mixed multinomial logit model
Abstract:Latent class models offer an alternative perspective to the popular mixed logit form, replacing the continuous distribution with a discrete distribution in which preference heterogeneity is captured by membership of distinct classes of utility description. Within each class, preference homogeneity is usually assumed, although interactions with observed contextual effects are permissible. A natural extension of the fixed parameter latent class model is a random parameter latent class model which allows for another layer of preference heterogeneity within each class. This article sets out the random parameter latent class model and illustrates its applications using a stated choice data set on alternative freight distribution attribute packages pivoted around a recent trip in Australia.
Document Type: Research Article
Affiliations: 1: Department of Economics,Stern School of Business, New York University, New York 10012, USA 2: The Business School, Institute of Transport and Logistics Studies, The University of Sydney, NSW 2006, Australia
Publication date: May 1, 2013