I'm trying to run mixed logit on my data.
A total of 400 individuals were asked to choose option in a stated preference experiment. Each respondent recieved 5 menues. From each menu, the respondent had to choose one out of three alternatives. The alternatives involved 4 attributes: (1) Supply - factor variable with 3 levels; (2) Dirt - factor variable with 3 levels; (3) Density - factor variable with 3 levels; (4) Tax - numeric variable with range 0-40, but actually with 5 optional levels: 0, 10, 20, 25 and 40.
The choice of an alternative depands on the 4 attributes and I also want to add characteristics of the respondent such as region (factor variable with 3 levels).
So I tried to arrange the data with the following columns: Option (A, B or C), Supply.A, Supply.B, Supply.C, Dirt.A, Dirt.B, Dirt.C, Density.A, Density.B, Density.C, Tax.A, Tax.B, Tax.c.
Then, I run:
library("mlogit") Result <- mlogit.data(df, shape = "wide", choice = "Option", varying = c(14:25)) Result.mxl <- mlogit(Option ~ Supply + Dirt + Density + Tax | 0, Result) summary(Result.mxl)
and basically it works.
Now, I want to add the characteristic variable - Region.
I couldn't make it work, not with dummy variables or with "Region" variable.
My teacher said to me that the right thing to do is to use dummy, but I don't know how to make it work.
I would kindly use any help.
Thanks in advance,
I want to emphasize: The 'letter' of the option (A, B or C) is not important at all, it was randomly selected. The important things for me is the "willingness to pay" for the whole alternative.