Industrial location modeling: Extending the random utility framework

• Tipo: Artigo em Revista Científica Internacional
• Data: 2004

Autores

Octávio Figueiredo (Autor) FEP; Paulo Guimaraes (Autor) FEP; Douglas Woodward (Autor) Outra

Revista

Título: Journal of Regional Science

Vol. 44 Nº 1

Páginas: 1-20

ISSN: 0022-4146

Editora: Wiley-Blackwell

Indexação

ISI Web of Knowledge - 111 Citações

ISI Web of Science

Scopus - 115 Citações

Classificação Científica

FOS: Ciências sociais > Outras ciências sociais

CORDIS: Ciências Sociais > Economia

Outras Informações

ID Authenticus: P-000-BTT

DOI: 10.1111/j.1085-9489.2004.00325.x

Abstract (EN): Given sound theoretical underpinnings, the random utility maximization-based conditional logit model (CLM) serves as the principal method for applied research on industrial location decisions. Studies that implement this methodology, however, confront several problems, notably the disadvantages of the underlying Independence of Irrelevant Alternatives (IIA) assumption. This paper shows that by taking advantage of an equivalent relation between the CLM and Poisson regression likelihood functions one can more effectively control for the potential IIA violation in complex choice scenarios where the decision maker confronts a large number of narrowly defined spatial alternatives. As demonstrated here our approach to the IIA problem is compliant with the random utility (profit) maximization framework.

Idioma: Inglês

Tipo (Avaliação Docente): Científica

Nº de páginas: 20