[Limdep Nlogit List] Nlogit simulation method

[Thao Thai]

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 <https://protect-au.mimecast.com/s/0HR3C3QNPBiPA97GsgBWjn?domain=monash.edu>
Monash Business School | Monash University
Tel (03) 99029847| Thao.T.Thai at monash.edu  <Thao.T.Thai at monash.edu>