CASA Working Paper 235

Abstract

Some of the rents identified in the Maximum Entropy (ME) gravity model are always negative. We show this is not true for the Minimum Mutual Information (MMI) formulation of the model or for the Uniform Prior (UP). Both methods give identical positive rents lending weight to the idea that these rents are invariant to the choice of baseline. Furthermore, we show that the differences in origin rents and in destination rents between ME and the UP and MMI models are both constant, which preserves the ME trip matrix and mean trip cost.

Author: Robin Morphet 

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