wtp function

Get WTP estimates a preference space model

Returns the computed WTP from a preference space model.

wtp(object, scalePar)

Arguments

• object: is an object of class logitr (a model estimated using the 'logitr()` function).
• scalePar: The name of the column that identifies the scale variable, which is typically "price" for WTP space models, but could be any continuous variable, such as "time".

Returns

A data frame of the WTP estimates.

Details

Willingness to pay is computed by dividing the estimated parameters of a utility model in the "preference" space by the scale parameter, which is should be price to obtain WTP estimates. Uncertainty is handled via simulation.

Examples

library(logitr)

# Estimate a preference space model
mnl_pref <- logitr(
  data    = yogurt,
  outcome = "choice",
  obsID   = "obsID",
  pars    = c("price", "feat", "brand")
)

# Compute the WTP implied from the preference space model
wtp(mnl_pref, scalePar = "price")