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Nested Logit Module

Now deal with Violations of Indepence from Irrelevant Alternatives(IIA)the right way -- consistent, efficient, theoretically correct modeling!


Features of the nested LOGIT module include:

No limits on your nesting structure

• Fit trees of any depth, any number of branches
• If you have sufficient RAM and hard disk space you can fit any model you care to specify, no matter how complex

Flexible modeling

• A straightforward way to describe your nesting structure
• Experiment with different types of trees easily
• Impose structural constraints
• Require the within-nest similarity parameter to be equal across selected nests

Pool different types of choice response data

• Each response can have its own number of alternatives
• Each response can come from a different part of the tree

Diagnostic statistics to help you decide on the right tree structure

• Automatic tests for significant correlation of errors in each nest
• No correlation suggests a nest can be merged to a higher level
• Automatic test of the entire nesting structure
• Determine whether you can use ordinary Multinomial LOGIT or whether nesting is required
• User- specified joint tests to drop a subset of nests (tree simplification)