Abstracts of Annual Conference of Japan Society for Management Information
Annual Conference of Japan Society for Management Information 2024
Session ID : PR0016
Conference information

Abstract
A Study on Parameter Estimation for Nested Logit Models Using MCMC Methods
*Yoshikazu Sakamaki
Author information
CONFERENCE PROCEEDINGS FREE ACCESS

Details
Abstract

The Nested Logit Model is characterized by its assumption of correlation between alternatives and the hierarchical structuring of choices within the model. Using the Nested Logit Model allows for the measurement of utilities for choice sets that are difficult to observe directly, but it also presents challenges due to its multimodal likelihood function. As a result, the parameter estimates obtained using traditional maximum likelihood estimation methods may not always accurately reflect actual consumer choice behavior. This study proposes a method to improve the accuracy of parameter estimation by using the MCMC (Markov Chain Monte Carlo) method to estimate the parameters of the Nested Logit Model.

Content from these authors
© 2025 by Japan Society for Management Information
Previous article Next article
feedback
Top