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Main Authors: Zhou, Yuqi, Cheng, Zhanhong, Hu, Lingqian, Bu, Yuheng, Wang, Shenhao
Format: Preprint
Published: 2025
Subjects:
Online Access:https://arxiv.org/abs/2509.07123
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author Zhou, Yuqi
Cheng, Zhanhong
Hu, Lingqian
Bu, Yuheng
Wang, Shenhao
author_facet Zhou, Yuqi
Cheng, Zhanhong
Hu, Lingqian
Bu, Yuheng
Wang, Shenhao
contents Nested logit (NL) has been commonly used for discrete choice analysis, including a wide range of applications such as travel mode choice, automobile ownership, or location decisions. However, the classical NL models are restricted by their limited representation capability and handcrafted utility specification. While researchers introduced deep neural networks (DNNs) to tackle such challenges, the existing DNNs cannot explicitly capture inter-alternative correlations in the discrete choice context. To address the challenges, this study proposes a novel concept - alternative graph - to represent the relationships among travel mode alternatives. Using a nested alternative graph, this study further designs a nested-utility graph neural network (NestGNN) as a generalization of the classical NL model in the neural network family. Theoretically, NestGNNs generalize the classical NL models and existing DNNs in terms of model representation, while retaining the crucial two-layer substitution patterns of the NL models: proportional substitution within a nest but non-proportional substitution beyond a nest. Empirically, we find that the NestGNNs significantly outperform the benchmark models, particularly the corresponding NL models by 9.2\%. As shown by elasticity tables and substitution visualization, NestGNNs retain the two-layer substitution patterns as the NL model, and yet presents more flexibility in its model design space. Overall, our study demonstrates the power of NestGNN in prediction, interpretation, and its flexibility of generalizing the classical NL model for analyzing travel mode choice.
format Preprint
id arxiv_https___arxiv_org_abs_2509_07123
institution arXiv
publishDate 2025
record_format arxiv
spellingShingle NestGNN: A Graph Neural Network Framework Generalizing the Nested Logit Model for Travel Mode Choice
Zhou, Yuqi
Cheng, Zhanhong
Hu, Lingqian
Bu, Yuheng
Wang, Shenhao
Machine Learning
Nested logit (NL) has been commonly used for discrete choice analysis, including a wide range of applications such as travel mode choice, automobile ownership, or location decisions. However, the classical NL models are restricted by their limited representation capability and handcrafted utility specification. While researchers introduced deep neural networks (DNNs) to tackle such challenges, the existing DNNs cannot explicitly capture inter-alternative correlations in the discrete choice context. To address the challenges, this study proposes a novel concept - alternative graph - to represent the relationships among travel mode alternatives. Using a nested alternative graph, this study further designs a nested-utility graph neural network (NestGNN) as a generalization of the classical NL model in the neural network family. Theoretically, NestGNNs generalize the classical NL models and existing DNNs in terms of model representation, while retaining the crucial two-layer substitution patterns of the NL models: proportional substitution within a nest but non-proportional substitution beyond a nest. Empirically, we find that the NestGNNs significantly outperform the benchmark models, particularly the corresponding NL models by 9.2\%. As shown by elasticity tables and substitution visualization, NestGNNs retain the two-layer substitution patterns as the NL model, and yet presents more flexibility in its model design space. Overall, our study demonstrates the power of NestGNN in prediction, interpretation, and its flexibility of generalizing the classical NL model for analyzing travel mode choice.
title NestGNN: A Graph Neural Network Framework Generalizing the Nested Logit Model for Travel Mode Choice
topic Machine Learning
url https://arxiv.org/abs/2509.07123