SEMINAR: UWA Business School Academic Seminar with WestNet Infrastructure Group Visiting Professor Juan de Dios Ortuzar

Discrete choice models have come a long way from the early 70s, when there was the need to specify only linear in parameters utility functions, uncorrelated alternatives and no taste variations among individuals. The new breed of models available today, allow not only to relax all these constraints, but are also capable of treating correctly panel data and the mix of revealed and stated preference data.

In this seminar, Professor Ortuzar will discuss the two main approaches available in practice to model choice among a discrete set of alternatives, the mixed logit (also known as random parameters or error components model) and the nested logit model incorporating the possibility of systematic taste variations. He will also discuss the use of these models, with revealed and stated preference data to determine the willingness-to-pay for reducing transport externalities such as accidents, noise and atmospheric pollution.