Taste heterogeneity, correlation and elasticities in latent class choice models, paper presented at the inaugural International Choice Modelling Conference

This paper discusses the differences between Multinomial Logit, Random Coefficients Mixed Logit and Latent Class Choice models in terms of taste heterogeneity, correlation between coefficients, and elasticities. Formulae for correlation and elasticities are presented for the Latent Class Choice model, and an empirical analysis is conducted to highlight the differences between the models on real world data. The paper highlights a number of advantages of the Latent Class Choice model, notably in terms of linking taste het-erogeneity, inter-coefficient correlation and elasticities to socio-demographic attributes.