Location choice models reveal zero-sum vs. positive-sum economic impact
Location choice models like conditional logit and Poisson may have the same coefficient estimates, but they predict different outcomes. Conditional logit suggests a win-lose situation between regions, while Poisson implies a win-win scenario. These models can be combined into a nested logit model with an outside option. The elasticities of conditional logit and Poisson represent extreme cases and can be used as reference points in practical research.