A discrete choice model for ordered alternatives.

*(English)* Zbl 0654.62093
A generalization of the multinomial logit (MNL) model is developed in which discrete alternatives are ordered so as to induce stochastic correlation among alternatives in close proximity. It is designed for situations where the alternatives are ordered, but is more flexible than previous ordered models. The model belongs to the generalized extreme value class introduced by {\it D. McFadden} [Modelling the choice of residential location. A. Karlqvist (ed.), Spatial interaction theory and planning models, 75-96 (1978)] and is therefore consistent with random utility maximization.
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##### MSC:

62P20 | Applications of statistics to economics |