[Limdep Nlogit List] MNL: Quantities greater than one
Raimund Bau
Raimund.Bau at rwth-aachen.de
Tue Jan 16 00:23:54 EST 2007
Dear Prof Greene, Prof Feinberg,
Thank you very much for your valuable answers to my question.
Maybe I will have to change my model and my entire approach. I thought
that if a consumer chose the same product on two different occasions
the overall fit of the MNL model would improve if the relative utility
of that product was assigned a higher value compared to the purchase of
one product of the same brand only.
Now as far as I understand, you are saying that if the consumer
exhibits the same behavior on a single occasion Nlogit/MNL would treat
it as if the consumer bought just one item of that specific brand
instead of treating it as if the consumer chose the brand twice. Thus
the same consumer behavior would be treated differently if my first
assumption is right.
Just to make sure we are discussing the same subject: I am not thinking
of situations where a consumer chooses two different brands from the
same category on a single occasion, which obviously would show a lack
of consistency in terms of utility maximization within the bounds of
such models. Furthermore, I am not really interested in quantities but
rather brand choice and price sensitivity depending on advertising
expenditures. Essentially my work is similar to Keane et al in 2004 who
used a mixed MNL as well.
Thank you once again!
Raimund Bau
RWTH Aachen
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