In MNL model, given the different alternative choices, we estimate the probability of choice across different options.
E.g. using the fishing data, we can use the following calculations to estimate the probability across 4 alternatives for each individual choices.
Fish <- mlogit.data(Fishing, shape = "wide", varying = 2:9, choice = "mode") mlogit.model1 <- mlogit(mode ~ 1 | income, data=Fish) result <- as.data.frame(fitted(mlogit.model1, outcome = FALSE))
The probabilities are as follows:
My question is, 1) How to calculate the substitution probabilities across each item among each other, given the probabilities of each item?
2) How to obtain the total demand using MNL model?
If someone can help me to answer these 2 questions, it will be of great help. I came across this article and similar others. But nowhere they explicitly defined how to solve these 2 questions.