ITLS-WP-07-16 Combining RP and SP data : Biases in using the nested logit ‘ trick ’ – contrasts with flexible mixed logit incorporating panel and scale effects

@inproceedings{Hensher2007ITLSWP0716CR,
  title={ITLS-WP-07-16 Combining RP and SP data : Biases in using the nested logit ‘ trick ’ – contrasts with flexible mixed logit incorporating panel and scale effects},
  author={David A. Hensher and John M. Rose and William Harvey Greene},
  year={2007}
}
It has become popular practice that joint estimation of choice models that use stated preference (SP) and revealed preference (RP) data requires a way of adjusting for scale to ensure that parameter estimates across data sets are not confounded by differences in scale. The nested logit ‘trick’ presented in Hensher and Bradley (1993) continues to be widely used, especially by practitioners, to accommodate scale differences. This modelling strategy has always assumed that the observations are… CONTINUE READING