Skip to main content Accessibility help
×
Hostname: page-component-7bb8b95d7b-w7rtg Total loading time: 0 Render date: 2024-09-06T07:14:34.433Z Has data issue: false hasContentIssue false

2 - Modeling binary choices

Published online by Cambridge University Press:  05 June 2012

William H. Greene
Affiliation:
New York University
David A. Hensher
Affiliation:
University of Sydney
Get access

Summary

The random utility model described in Chapter 1 is one of two essential building blocks that form the foundation for modeling ordered choices. The second fundamental pillar is the model for binary choices. The ordered choice model that will be the focus of the rest of this book is an extension of a model used to analyze the situation of a choice between two alternatives – whether the individual takes an action or does not, or chooses one of two elemental alternatives, and so on. This chapter will develop the standard model for binary choices in considerable detail. Many of the results analyzed in the chapters to follow will then be straightforward extensions.

There are numerous surveys available, including Amemiya (1981), Greene (2008a, Ch. 23) and several book-length treatments such as Cox (1970) and Collett (1991). Our interest here is in the aspects of binary choice modeling that are likely to reappear in the analysis of ordered choices. We have therefore bypassed several topics that do appear in other treatments, notably semiparametric and nonparametric approaches, but whose counterparts have not yet made significant inroads in ordered choice modeling. (Chapter 12 does contain some description of a few early entrants to this nascent literature.) This chapter also contains a long list of topics related to binary choice modeling, such as fit measures, multiple equation models, sample selection, and many others, that are useful as components or building blocks in the analysis of ordered choices. Our intent with this chapter is to extend beyond conventional binary choice modeling, and provide a bridge to the somewhat more involved models for ordered choices.

Type
Chapter
Information
Modeling Ordered Choices
A Primer
, pp. 9 - 98
Publisher: Cambridge University Press
Print publication year: 2010

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

Save book to Kindle

To save this book to your Kindle, first ensure coreplatform@cambridge.org is added to your Approved Personal Document E-mail List under your Personal Document Settings on the Manage Your Content and Devices page of your Amazon account. Then enter the ‘name’ part of your Kindle email address below. Find out more about saving to your Kindle.

Note you can select to save to either the @free.kindle.com or @kindle.com variations. ‘@free.kindle.com’ emails are free but can only be saved to your device when it is connected to wi-fi. ‘@kindle.com’ emails can be delivered even when you are not connected to wi-fi, but note that service fees apply.

Find out more about the Kindle Personal Document Service.

Available formats
×

Save book to Dropbox

To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Dropbox.

Available formats
×

Save book to Google Drive

To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Google Drive.

Available formats
×