A Monte Carlo study of tests for the independence of irrelevant alternatives property

Tim Fry and Mark Harris

Transportation Research Part B: Methodological, 1996, vol. 30, issue 1, 19-30

Abstract: A plethora of tests for the Independence of Irrelevant Alternatives (IIA) 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.

Date: 1996
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (32)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/0191-2615(95)00019-4
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:transb:v:30:y:1996:i:1:p:19-30

Ordering information: This journal article can be ordered from
http://www.elsevier.com/wps/find/supportfaq.cws_home/regional
https://shop.elsevie ... _01_ooc_1&version=01

Access Statistics for this article

Transportation Research Part B: Methodological is currently edited by Fred Mannering

More articles in Transportation Research Part B: Methodological from Elsevier
Bibliographic data for series maintained by Catherine Liu ().