Chapter 13: Closed Form Discrete Choice Models

Random utility discrete choice models are widely used in transportation and other fields to represent the choice of one among a set of mutually exclusive alternatives. The decision maker, in each case, is assumed to choose the alternative with the highest utility to him/her. The utility of each alternative to the decision maker is not completely known by the modeler; thus, the modeler represents the utility by a deterministic portion which is a function of the attributes of the alternative and the characteristics of the decision-maker and an additive random component which represents unknown and/or unobservable components of the decision maker's utility function.