Error Component Model with Nested Structure Sample Clauses

Error Component Model with Nested Structure. The error component nested logit model was applied to assess the impacts of habitual behavior and private mobility expenses on the propensity to shift from conventional modes (Auto driver, auto passenger, or public transit) to emerging modes (exclusive and shared on-demand services). Respondents were faced three alternatives in each scenario: conventional modes, exclusive on- demand services, and shared on-demand services. Socio-economic and demographic attributes, habits associated with existing modes, and private mobility auxiliary expenses were considered as the independent variables. To account for the similarities between exclusive and shared on-demand services, it is reasonable to assume that a nested structure would fit the data better. Therefore, one nest for the emerging modes, including exclusive and shared on-demand services was considered. To account for the nested structure, one term must be added to Eq. 3, so the utility function would be as follow (Xxxxxxx et al., 2005):
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