EconBase
← All papers

The Mixed Aggregate Preference Logit Model: A Machine Learning Approach to Modeling Unobserved Heterogeneity in Discrete Choice Analysis

Connor R. Forsythe, Cristian Arteaga, John P. Helveston

arXiv 31 Jan 2024 · Econometrics

arXiv:2402.00184 · PDF · DOI · OpenAlex · Extracted main text

Abstract

This paper introduces the Mixed Aggregate Preference Logit (MAPL, pronounced "maple”) model, a novel class of discrete choice models that leverages machine learning to model unobserved heterogeneity in discrete choice analysis. The traditional mixed logit model (also known as "random parameters logit”) parameterizes preference heterogeneity through assumptions about feature-specific heterogeneity distributions. These parameters are also typically assumed to be linearly added in a random utility (or random regret) model. MAPL models relax these assumptions by instead directly relating model inputs to parameters of alternative-specific distributions of aggregate preference heterogeneity, with no feature-level assumptions required. MAPL models eliminate the need to make any assumption about the functional form of the latent decision model, freeing modelers from potential misspecification errors. In a simulation experiment, we demonstrate that a single MAPL model specification is capable of correctly modeling multiple different data-generating processes with different forms of utility and heterogeneity specifications. MAPL models advance machine-learning-based choice models by accounting for unobserved heterogeneity. Further, MAPL models can be leveraged by traditional choice modelers as a diagnostic tool for identifying utility and heterogeneity misspecification.

Citation extraction

28
references
60
in-text mentions
30
distinct cited
1
self-citations
5,260
main-text words

appendix boundary found by appendix_command · 87% of the source is main text. Read the extracted text to check this.

Most heavily cited references

The works this paper leans on most, across its whole bibliography — not restricted to papers in our corpus. Ranked by composite intensity, which combines how often a work is mentioned, how many sections mention it, and how much of that falls in the main text rather than the appendix.

ReferenceIntensityMentionsSectionsMain text
1Train (2009)0.9507586%
2Fosgerau and Mabit (2013) Easy and flexible mixture distributions0.9416583%
3Revelt and Train (1998) Mixed logit with repeated choices: Households' choices of appliance efficiency level0.7373367%
4McFadden and Train (2000) Mixed MNL models for discrete response0.73732100%
5van Cranenburgh, Wang, Vij, Pereira and Walker (2022) Choice modelling in the age of machine learning - Discussion paper0.73732100%
6Arteaga, Park, Beeramoole and Paz (2022) xlogit: An open-source Python package for GPU-accelerated estimation of Mixed Logit models0.64422100%
7Forsythe, Gillingham, Michalek and Whitefoot (2023) Technology advancement is driving electric vehicle adoption0.64422100%
8Guo and Zhang (2021) Understanding factors influencing shared e-scooter usage and its impact on auto mode substitution0.64422100%
9Haghani, Bliemer and Hensher (2021) The landscape of econometric discrete choice modelling research0.64422100%
10Helveston, Liu, Feit, Fuchs, Klampfl and Michalek (2015) Will subsidies drive electric vehicle adoption? Measuring consumer preferences in the U.S. and China0.64422100%

Showing the top 10 of 30 scored citations.