Romain Crastes dit Sourd – Seminar – A new shifted log-normal distribution for mitigating ‘exploding’ implicit prices in mixed multinomial logit models

CMC member Romain Crastes dit Sourd has been invited to give a talk at the pan-institute Series of Webinars in Economics of Environment, Energy and Transports (SWEEET) on Tuesday 2 February at 15:00 GMT. Romain will present his recent work on using a new shifted log-normal distribution for mitigating the ‘exploding’ implicit price problems in mixed logit models. The mixed logit model is widely use in non-market valuation as well as in other fields (marketing, transport, health, etc) to elicit preferences and derive willingness-to-pay (WTP) for a given good in order to inform policy making. Analysts sometimes face an issue where the data at hand forces them to choose between a mixed logit model with inferior goodness-of-fit and reasonable WTP estimates and a model with better fit and unrealistically large WTP. The new approach which is going to be introduced during this talk allows to obtain mixed logit models which feature both reasonable fit and WTP measures. The proposed approach is tested on 10 datasets in order to provide robust evidence.

Registration on the SWEEET website (free) is necessary to attend the seminar:
https://sites.google.com/view/seminarsweeet/home?authuser=0

An early working paper version of the research is available at:
https://www.dropbox.com/s/61v6hyvxe3bexjd/Shifted_lognormal.pdf?dl=0