Example: tourism industry
Nested Logit - Box
Nested Logit I The “inclusive value” parameter, τ, is the weight accorded each of the branches. I Under CL (or MNL), we assume this weight is fixed at 1. I Estimation is done via full information maximum likelihood: logL = XN i log Pr j|i ×Pr i. I Model has many parameters. I It requires a lot of work to interpret. I My job to show you how ... I Stata is actually quite good w/this model.
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