Interaction

[Atefeh Fakourrad]

Dear Prof. Bierlaire,

I have a question about the interaction effect in binary logit. Let's assume I am estimating a binary logit where there are two modes of transportation ( car and train). The idea is to understand whether female are more sensitive to having luggage when choosing the mode of transport and if so to what extent. In our study, B_LU (luggage) is positive for choosing car and I would like to know how it changes for male and female. I was wondering if I can define two variables capturing the interaction between Luggage (LU) and Male and also Luggage (L) and Female and then compare the value of the estimated parameters and simply calculate to what extent female are more sensitive to luggage. Following are the utility functions: 

U_car= B_LU_Male * LU * Male + B_LU_Female * LU * Female 

U_train=ASC0

Thanks for your help.

Kind regards,

Ati.  

[Bierlaire Michel]

Of course you can.

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