I am running a nested logit model of 2 levels. For level 1: I have 4 options.
For the option 2 in level 1, I have only one choice that correpsonds to it in level 2.
In other words, I have one option in level 2 and I do not have a lot of option like other nests.
My question is : The results will be good? I think i will have problem in the inclusive value "dissmilarity parameters" for this option 2. As i dont have different nests in level 2.
The dissimilarity parameter is equal to 1 for the option 2. What can I do. How can i interpret the result of the inclusive value? Can i make confidence in the results?
For the option 2 in level 1, I have only one choice that correpsonds to it in level 2.
In other words, I have one option in level 2 and I do not have a lot of option like other nests.
My question is : The results will be good? I think i will have problem in the inclusive value "dissmilarity parameters" for this option 2. As i dont have different nests in level 2.
The dissimilarity parameter is equal to 1 for the option 2. What can I do. How can i interpret the result of the inclusive value? Can i make confidence in the results?
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