Testing the Consistency of Nested Logit Models with Utility Maximization

Herriges, Joseph A.; Kling, Catherine L.

Economics Letters Vol. 50 (1996): 33-39.

This paper provides simple necessary conditions for testing the local consistency of nested logit models with stochastic utility maximization. A graphical analysis illustrates the extent to which these conditions extend the range of admissible dissimilarity coefficients beyond the unit interval.

Published Version