Week 6

Question 1

What are the characteristics of multinomial logit?

Answer 1

yi: not ordered
xi: constant for different alternatives (regressors don’t depend on choice)

E.g. choice of political party as a function of individual characteristics

Question 2

What are the characteristics of conditional logit?

Answer 2

yi: not ordered
xi: not constant for different alternatives (regressor depends on choice)

E.g. mode of transport for daily commute

Question 3

What are the characteristics of ordered logit?

Answer 3

yi: ordered
x: constant for different alternatives (regressor doesn’t depend on choice)

E.g. share of wealth invested in stock market