In nested logit models you can define regressors at each level of the tree. In all examples I've read in the manual and additional examples, the regressors are defined only for the last level. I'll use a commonly discussed example, the fishing mode.
Nests:
Shore = { Beach, Pier} , Boat = { Charter, Private}
Say that I have regressors Price
, CatchRate
, and Income
. How do I use Price
and CatchRate
to explain the last level and Income
to explain the first.
In R I can do:
mlogit(choice~price+catch,nests=list(shore=c("pier","beach"),boat=c("charter","private")))
but I don't know where to stick the variable income
.