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Equilibrium-Constrained Estimation of Recursive Logit Choice Models

Hung Tran, Tien Mai, Minh Hoang Ha

arXiv 19 Oct 2025 · Econometrics

arXiv:2510.16886 · PDF · DOI · OpenAlex · Extracted main text

Abstract

The recursive logit (RL) model provides a flexible framework for modeling sequential decision-making in transportation and choice networks, with important applications in route choice analysis, multiple discrete choice problems, and activity-based travel demand modeling. Despite its versatility, estimation of the RL model typically relies on nested fixed-point (NFXP) algorithms that are computationally expensive and prone to numerical instability. We propose a new approach that reformulates the maximum likelihood estimation problem as an optimization problem with equilibrium constraints, where both the structural parameters and the value functions are treated as decision variables. We further show that this formulation can be equivalently transformed into a conic optimization problem with exponential cones, enabling efficient solution using modern conic solvers such as MOSEK. Experiments on synthetic and real-world datasets demonstrate that our convex reformulation achieves accuracy comparable to traditional methods while offering significant improvements in computational stability and efficiency, thereby providing a practical and scalable alternative for recursive logit model estimation.

Citation extraction

41
references
93
in-text mentions
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distinct cited
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self-citations
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main-text words

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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
1Tran, H. and Mai, T (2024) Network-based representations and dynamic discrete choice models for multiple discrete choice analysis self1.00093100%
2Mai, T. and Frejinger, E (2022) Undiscounted recursive path choice models: Convergence properties and algorithms self1.00074100%
3Fosgerau, M., Frejinger, E., and Karlström, A (2013) A link based network route choice model with unrestricted choice set1.00063100%
4Rust, J (1987) Optimal replacement of GMC bus engines: An empirical model of Harold Zurcher1.00054100%
5MOSEK ApS (2023) MOSEK Optimizer API for Python, Version 10.1, 20230.92844100%
6Mai, T., Fosgerau, M., and Frejinger, E (2015) A nested recursive logit model for route choice analysis self0.8947471%
7Fosgerau, M., McFadden, D., and Bierlaire, M (2013) Choice probability generating functions0.87462100%
8Mai, T., Bastin, F., and Frejinger, E (2018) A decomposition method for estimating recursive logit based route choice models self0.87452100%
9Mai, T (2016) A method of integrating correlation structures for a generalized recursive route choice model self0.7373367%
10Iskhakov, F., Lee, J. H., Rust, J., Schjerning, B., and Seo, K (2016) Comment on “constrained optimization approaches to estimation of structural models”0.73732100%

Showing the top 10 of 41 scored citations.