How to include the Opt-out Alternative in the mlogit model ?

Dear users,

Using Discrete choice expriment, I have 9 choice sets with 3 alternatives each; (Alternative 1) (Alternative 2) and (Opt- out Alternative).

So how to code the opt-out in the data set, and how to introduce it in the discrete choice model (multinomial logit) ? Since each of alternatives 1 and 2 are discribed in terms of alternative specific variables,what about the opt out ?

Some take it as an Alternative specific constant with alternative covariates equals to 0 is it correct and Why?


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