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Transit Modeling Guidance by Rosella Picado and ... - FSUTMSOnline

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Nested Logit Model: How?<br />

Choice<br />

Auto<br />

<strong>Transit</strong><br />

Nest coefficient<br />

µ = 0.3<br />

Drive-<br />

Alone<br />

Shared-<br />

Ride<br />

Bus<br />

Light-Rail<br />

<strong>Transit</strong><br />

• Nesting coefficients scale the utilities: U N (bus) = U(bus) / µ<br />

• Nesting coefficients take values between 0 <strong>and</strong> 1<br />

• Steeper diversion curve between nested alternatives<br />

• Smaller the nesting coefficient, the more similar the nested alternatives<br />

• When µ = 1, the model becomes multinomial logit (MNL)<br />

• When µ

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