[Limdep Nlogit List] Reference alternative of individual characteristics in the case of variable sized choice sets

Lixian Qian Lixian.Qian at xjtlu.edu.cn
Thu Dec 20 01:44:29 AEDT 2018

Dear all,

I am running a discrete choice model with variable sized choice sets for two groups of people.
Say there are three alternatives, bus, train and car, where car is only available for some people. Each alternative has two attributes of cost and time, and each people has individual characteristic of income.

Then, I have following utility functions:

U(bus) = βcost costi,bus + βtime timei,bus + αbus + γbus incomei
U(train) = βcost costi,train + βtime timei,train + αtrain + γtrain incomei
U(car) =βcost costi,car + βtime timei,car

My puzzle is that for the people without car in their choice set, what is the reference alternative when estimating and interpreting the coefficients of income.

Appreciate your time to answer my question.
Thank you.


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