Economics

An Introduction to Discrete Choice Analysis in R

When studying why people make the economic choices they do, we need some way of quantifying the value to the person of the offered choices. For instance, when deciding whether to ride to my office by bike or instead catch the bus, there are myriad factors that my brain feeds into an equation to get two values: the utility of taking the bus the utility of riding my bike For instance, if it looks like it might rain, I’m more likely to take the bus as getting soaked reduces the utility of cycling to work.