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FAG3184 Discrete Choice Modelling 4.5 credits

Theoretical foundation of discrete choice modelling, and core theoretical concepts of rational choice theory and behavioral economics. Estimation of flexible discrete choice models, including simulation. Comparing the approaches of econometric vs machine learning.

Course offerings are missing for current or upcoming semesters.
Headings with content from the Course syllabus FAG3184 (Autumn 2023–) are denoted with an asterisk ( )

Content and learning outcomes

Course contents

Main content of the course includes: Theoretical foundation of discrete choice modelling, and core theoretical concepts of rational choice theory and behavioural economics. Estimation of flexible discrete choice models including simulation methods and large choice sets and Hierarchical Bayes, with a focus on transport demand. Theoretical approach of econometrics vs Machine Learning, as applied to forecast demand modelling, in particular in transport.

Intended learning outcomes

Describe and critique the application of rational choice theory in applied demand modelling in market research with a focus to transport demand, with a focus of using core theoretical concepts of rational choice theory and behavioural economics.

Describe underlying theoretical foundation for estimation of demand models. Develop and estimate flexible demand models using discrete choice econometric, including the use of simulation methods.

Estimate a transport demand model on realistic data set with large choice sets, and communicate and interpret the results.

Describing and using standard theory and techniques for model interpretation and validation, including goodness-of-fit measures, cross-validation and out-of-sample prediction

Describe basic theory of Bayesian estimation and hierarchical models. Formulate and estimate a model using Hierachical Bayes for multinomial choices.

Discuss the approach in econometrics, and differences and similarities with approach in Machine Learning, when applied to forecast demand modelling.

Literature and preparations

Specific prerequisites

Admission to relevant doctoral program: Approved courses of at least 60 higher education credits at the basic level in the subject areas of transportation systems, civil engineering, urban planning, economics, computer science, physics, applied mathematics, or other subjects deemed directly relevant. Proficiency in English equivalent to English 6. 

Recommended prerequisites

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Examination and completion

If the course is discontinued, students may request to be examined during the following two academic years.

Grading scale

P, F


  • SEM1 - Seminars, 3.5 credits, grading scale: P, F
  • TEN1 - Written exam, 1.0 credits, grading scale: P, F

Based on recommendation from KTH’s coordinator for disabilities, the examiner will decide how to adapt an examination for students with documented disability.

The examiner may apply another examination format when re-examining individual students.

The examiner may, based on a recommendation from KTH's coordinator of support for students with disabilities, decide on any adapted examination for students with documented, permanent disabilities.

The examiner may allow an alternative form of examination for re-examination of individual students.

Other requirements for final grade

75% or more participation in seminars is mandatory. One seminar may be replaced by a written and oral examination

Opportunity to complete the requirements via supplementary examination

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Opportunity to raise an approved grade via renewed examination

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Ethical approach

  • All members of a group are responsible for the group's work.
  • In any assessment, every student shall honestly disclose any help received and sources used.
  • In an oral assessment, every student shall be able to present and answer questions about the entire assignment and solution.

Further information

Course room in Canvas

Registered students find further information about the implementation of the course in the course room in Canvas. A link to the course room can be found under the tab Studies in the Personal menu at the start of the course.

Offered by

Main field of study

This course does not belong to any Main field of study.

Education cycle

Third cycle

Add-on studies

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Anders Karlström (

Postgraduate course

Postgraduate courses at ABE/Transport and Systems Analysis