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An empirical comparison of the validity of a neural net based multinomial logit choice model to alternative model specifications

Hruschka, Harald ; Fettes, Werner ; Probst, Markus



Abstract

Applications of choice models to brand purchase data as a rule specify a linear deterministic utility function. We estimate deterministic utility by means of a neural net able to approximate any continuous multivariate function and its derivatives to a desired level of precision. We compare this model to related alternatives both with linear and nonlinear utility functions. Alternatives with ...

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