Tootfinder

A generalised discrete mixture model to better capture preference heterogeneity in discrete choice data
Thomas O. Hancock, John Buckell
https://arxiv.org/abs/2506.14094

A generalised discrete mixture model to better capture preference heterogeneity in discrete choice data
Arguably the key issue in modelling discrete choice data is capturing preference heterogeneity. This can be through observed characteristics, and/or using techniques for capturing random heterogeneity across respondents. On the latter, in health economics, the two main approaches are the mixed multinomial logit (MMNL) and the latent class (LC) model. In this paper, we revisit the discrete mixture (DM) model as a third alternative to these. The DM model is similar to LC but allows for any combin…