Have an idea?

Visit Sawtooth Software Feedback to share your ideas on how we can improve our products.

Does opt-out Alternative count for likelihood calculation?

So if you present 2 alternatives and an opt-out option how do you calculate the likelihood for that?
Greetings
asked Nov 23 by anonymous

1 Answer

0 votes
 
Best answer
Yes, it does.

Your null likelihood for a case with two alternatives plus an opt out is 0.3333333.  

If your utilities for Option A is 1 and for option B is 0 and for the opt-out is 0 then their exponentiated utilities are, respectively, 2.718, 1 and 1 and their choice probabilities are 0.576, 0.212 and 0.212.  If the respondent chooses the first alternative, then your observed likelihood is 0.576.
answered Nov 23 by Keith Chrzan Platinum Sawtooth Software, Inc. (78,825 points)
Thanks a lot!
...