Abstract

Overcoming the independence of irrelevant alternatives (IIA) property of the basic multinomial logit (MNL) model is a major research issue in the field of discrete choice modelling. In recent years, several approaches have been developed to achieve this goal with different degrees of appropriateness. On the one hand there are very flexible models, which are able to account for complex correlation structures and a wide variety of interdependencies between alternatives by opening the variance-covariance structure. But they require a lot of effort in terms of specification and computation. On the other hand there are less complex models, which introduce a similarity factor into the systematic part of the utility function, which decreases the utility of an alternative with respect to its similarity with other alternatives. They are easier to estimate and applicable to large choice sets. However, these models were designed to solve specific, in particular route choice, problems and not offhand transferable. This paper summarises and evaluates different approaches to overcome the IIA property. Special consideration is given to approaches that are easy to compute and applicable to a combined route, mode and destination choice model.

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