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Globally Optimal Estimation of Nested Logit Models

Pham, Hoang Giang et al.
arXiv (All) · Papers
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90c26econometricsoptimization-and-control
Nested logit is widely used in operational demand models, yet jointly estimating its utility coefficients and nest dissimilarity parameters requires nonconvex optimization. Standard estimation routines offer no certificate of global optimality, leaving a gap between globally optimizing decisions und
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