Industrial Location Modeling: Extending the Random Utility Framework

@inproceedings{Guimares2004IndustrialLM,
  title={Industrial Location Modeling: Extending the Random Utility Framework},
  author={Paulo Guimar{\~a}es and Oct{\'a}vio Figueiredo and Douglas P. Woodward},
  year={2004}
}
Given sound theoretical underpinnings, the random utility maximization-based conditional logit model (CLM) serves as the principal method for applied research on industrial location decisions. Studies that implement this methodology, however, confront several problems, notably the disadvantages of the underlying Independence of Irrelevant Alternatives (IIA) assumption. This paper shows that by taking advantage of an equivalent relation between the CLM and Poisson regression likelihood functions… CONTINUE READING
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