A Monte Carlo Study of Tests for the Independence of Irrelevant Alternatives Property
A plethora of tests for the Independence of Irrelevant Alternatives (HA) property of Logit models of discrete choice behavior has been proposed in the literature. These tests are based upon asymptotic arguments and little is known about their size and power properties in finite samples. This paper u...
| Main Authors: | , |
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| Format: | Journal Article |
| Language: | English |
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Elsevier Ltd
1996
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| Online Access: | http://hdl.handle.net/20.500.11937/81820 |
| _version_ | 1848764429951303680 |
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| author | Fry, T.R.L. Harris, Mark |
| author_facet | Fry, T.R.L. Harris, Mark |
| author_sort | Fry, T.R.L. |
| building | Curtin Institutional Repository |
| collection | Online Access |
| description | A plethora of tests for the Independence of Irrelevant Alternatives (HA) property of Logit models of discrete choice behavior has been proposed in the literature. These tests are based upon asymptotic arguments and little is known about their size and power properties in finite samples. This paper uses a Monte Carlo simulation study to investigate the size and power properties of six tests for IIA in the multinomial Logit model. Our results show that the majority of tests based upon partitioning the choice set appear to have very poor size and power properties in small samples. Tests for IIA based upon the DOGIT model, similarly have poor size properties, but in some circumstances do have reasonable power properties. |
| first_indexed | 2025-11-14T11:19:13Z |
| format | Journal Article |
| id | curtin-20.500.11937-81820 |
| institution | Curtin University Malaysia |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-14T11:19:13Z |
| publishDate | 1996 |
| publisher | Elsevier Ltd |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | curtin-20.500.11937-818202021-03-25T02:29:31Z A Monte Carlo Study of Tests for the Independence of Irrelevant Alternatives Property Fry, T.R.L. Harris, Mark Social Sciences Science & Technology Technology Economics Engineering, Civil Operations Research & Management Science Transportation Transportation Science & Technology Business & Economics Engineering MULTINOMIAL LOGIT MODEL SPECIFICATION TESTS A plethora of tests for the Independence of Irrelevant Alternatives (HA) property of Logit models of discrete choice behavior has been proposed in the literature. These tests are based upon asymptotic arguments and little is known about their size and power properties in finite samples. This paper uses a Monte Carlo simulation study to investigate the size and power properties of six tests for IIA in the multinomial Logit model. Our results show that the majority of tests based upon partitioning the choice set appear to have very poor size and power properties in small samples. Tests for IIA based upon the DOGIT model, similarly have poor size properties, but in some circumstances do have reasonable power properties. 1996 Journal Article http://hdl.handle.net/20.500.11937/81820 10.1016/0191-2615(95)00019-4 English Elsevier Ltd restricted |
| spellingShingle | Social Sciences Science & Technology Technology Economics Engineering, Civil Operations Research & Management Science Transportation Transportation Science & Technology Business & Economics Engineering MULTINOMIAL LOGIT MODEL SPECIFICATION TESTS Fry, T.R.L. Harris, Mark A Monte Carlo Study of Tests for the Independence of Irrelevant Alternatives Property |
| title | A Monte Carlo Study of Tests for the Independence of Irrelevant Alternatives Property |
| title_full | A Monte Carlo Study of Tests for the Independence of Irrelevant Alternatives Property |
| title_fullStr | A Monte Carlo Study of Tests for the Independence of Irrelevant Alternatives Property |
| title_full_unstemmed | A Monte Carlo Study of Tests for the Independence of Irrelevant Alternatives Property |
| title_short | A Monte Carlo Study of Tests for the Independence of Irrelevant Alternatives Property |
| title_sort | monte carlo study of tests for the independence of irrelevant alternatives property |
| topic | Social Sciences Science & Technology Technology Economics Engineering, Civil Operations Research & Management Science Transportation Transportation Science & Technology Business & Economics Engineering MULTINOMIAL LOGIT MODEL SPECIFICATION TESTS |
| url | http://hdl.handle.net/20.500.11937/81820 |