A practical concern about the relevance of alternative-specific constants for new alternatives in simple logit models

Abstract

When a “new” alternative is introduced, post-estimation, into a logit model, analysis initially exclude an ASC or occasionally assume a correspondence with an existing alternative. Using a recent data set for mode and route choice, the paper highlights the forecasting implications of ignoring the ASC in the utility expression of a “new” alternative, and how sensitive the market shares are to the inclusion/ exclusion of the ASC.