25. The overall utility (Uin) can be expressed as
Where Uin = the person n’s utility for choice alternative i
Vin = the systematic (observable or explainable) component of
utility and utility depends on the attributes (Z) and the social
and economic characteristics (S) of the respondent, V (Zij ,Si).
• Ein = the random or unexplainable component of utility
ininin VU
26. The conditional indirect utility function is generally estimated as:
β0 = the alternative specific constant (ASC)
Z = the number of fuel characteristic scenario attribute
S = the number of social and economic characteristics of the respondent
β1 to βn = the vector of attributes fuel characteristic scenario attribute
βa to βm = the vector of interaction terms social and economic characteristics
kmbannin SSSZZZV ...... 2122110
The total amount of money people are willing to pay in order
to receive one unit
iablemonetary
attribute
W
var
1