From Thao.T.Thai at monash.edu Mon Nov 30 21:23:49 2020 From: Thao.T.Thai at monash.edu (Thao Thai) Date: Mon, 30 Nov 2020 21:23:49 +1100 Subject: [Limdep Nlogit List] Nlogit simulation method Message-ID: Hi Nlogit users, I would be grateful if you could explain how Nlogit undertakes the simulation method which is descried in nlogit manual: (1) base case is ASC only model (which means all attributes take on Zero) (2) Change one or some attribute value (3) Here is what I am confused about: *How did Nlogit arrives the probabilities of choosing for each alternative * - Assume other attributes takes zero except changed attribute take the values specified in (2) OR - Other attributes take values as is in the data and the changed attribute take the new value specified in (2) This is because I am not sure if the simulation described in Nlogit is similar to the "predictive uptake analysis" usually done in Health Economics literature and they call it "simulation". The process is: (1) specify a base case in which all attributes take on fixed values and calculate probabilities of choosing each alternative (2) change values of one or some attributes (3) recalculate the probabilities of choosing each alternative (4) the differences between probabilities of choosing the same alternative before and after are attributable to the change of attribute values. My second question: *How does Nlogit undertake the simulation using a mixed logit model?* Does it simply use the mean value of coefficients or does nlogit incorporate the distribution of coefficients in their calculation? Thank you so much. I look forward to seeing your explanation. Thao -- *Thao Thai*| MHEcon(Adv), BPharm PhD candidate Centre for Health Economics Monash Business School | Monash University Tel (03) 99029847| Thao.T.Thai at monash.edu