There are different formulations for hierarchical nested Logit models. ABM Nested Demand follows the formulation in Ben-Akiva 1985. Transformations are given below for alternative formulations.
For the sake of clarity, we will concentrate on the case destination choice - mode choice. The letters d and m stand for destination and mode.
ABM Nested Demand
The following applies:
                                            
                                        
                                            
                                        
                                            
                                        
where
| Vdm | Base utility | 
| lD | Destination choice lambda | 
| lM | Mode choice lambda | 
| Ad | Attraction factor of destination d | 
Transformation according to Ben-Akiva
The following applies:
                                            
                                        
                                            
                                        
                                            
                                        
where
| Vd | Utility of destination d (systematic part) | 
| Vm | Uility of mode m (systematic part) | 
| Vdm | Utility of mode m in combination with destination d (systematic part) | 
| μD | Scale parameter destination | 
| μM | Scale parameter mode | 
Transformation according to ABM Nested Demand
| ABM Nested Demand | Ben-Akiva | 
| Vdm | Vd + Vm + Vdm | 
| lM | μM | 
| lM | μD | 
| AM | 1 | 
Transformation according to the tour-based model
The following applies:
                                            
                                        
                                            
                                        
                                            
                                        
where
| Vd | Utility of destination d | 
| Vdm | Mode choice utility | 
| θ | LogSum parameter | 
| Ad | Attraction factor of destination d | 
Transformation according to ABM Nested Demand
| ABM Nested Demand | Tour-based model | 
| Vdm | Vd / θ + Vdm | 
| lM | 1 | 
| lD | θ | 
| Ad | Ad | 
Another variant
The following applies:
                                            
                                        
                                            
                                        
                                            
                                        
where
| Vdm | Utility of mode m in combination with destination d (systematic part) | 
| θ | LogSum parameter | 
| Ad | Attraction factor of destination d | 
Transformation according to ABM Nested Demand
| ABM Nested Demand | Variant | 
| Vdm | Vdm / θ | 
| lM | 1 | 
| lD | θ | 
| Ad | Ad | 
Web TAG
TAG essentially describes the case mode choice - destination choice.
- ABM Nested Demand
For the mode choice - destination choice case, the ABM formulation is Nested Demand:
                                            
                                        
                                            
                                        
                                            
                                        
- Web TAG
The following applies:
                                            
                                        
                                            
                                        
                                            
                                        
where
| Gdm | Generalised cost | 
| θmode | Mode parameter | 
| ldist | Distribution parameter | 
| Bd | Attraction factor | 
Transformation according to ABM Nested Demand
| ABM Nested Demand | Web TAG | 
| Vdm | Gdm | 
| lM | θ...λdist | 
| lD | -λdist | 
| Ad | Bd | 

