Interval regression - contingent valuation (Dichotomous choice)

[Eileen Mitchell]

Hi all,

I am trying to run a interval regression model - using a dichotomous choice contingent valuation method.


response1 = Yes / No to bid1 amount
response2 = Yes/No to bid2 amount

The model runs ok when I use the double bounded command: double
doubleb bid1 bid2 response1 response2

or biprobit

biprobit response1 response2 bid1 bid2


However, I want when I go to use the intreg command:

intreg response1 response2 bid1 bid2

I get the following message: observations with answer1 > answer2 not allowed


I was wondering if someone who has used the model before - know 1. why this message occurs 2. can suggest a way to resolve it.

Thanks

Eileen

[Rich Goldstein]

-intreg- is not appropriate for situations with two binary variables; it is appropriate when you have interval censored data; in that case it expects that the first "dependent" variable will be no larger than the second as the two define the interval within which the "true" outcome can be found

why, when your two dependent variables are "response1" and "response2", you get an error message saying that "answer1 > answer2", I don't know (unless you made a typo)