An Approach to Qualitative Response Model with Information Entropy

Derivation of the Logit Model and Application

Abstract

In the Osaka bay areas, where many regional development projects have been planned and carried out, the infrastructures such as electricity and gas are being consolidated. It is necessary to make optimum design considering future demands for those utilities. Qualitative response model based on utility value is effective to estimate demands for the project under indefinite conditions, especially the Logit model is popular tool to estimate demands. However, this model does not be clarified the choice behavior of a decision-maker in its inducing process, and is called in question in the supposition. This report showed that the Logit model can be derived from information entropy without positing an extreme value distribution. Besides, this paper showed that new aggregate conception was suggested for statistical calculation and that it was verified by applying to the amusement institutions.