Distribution-free maximum likelihood for binary responses
Distribution Free maximum Likelihood for Binary Responses
In this article, let’s take the latent utility model as an example for the binary response model. The intuition of the latent utility model is that respondents will pick up the choice which will give the highest utility for her. Because the utility is not observable, it is assumed that the latent utility is linear with the some explanatory variables which affects the utility of the choice to the respondent and there is an additive response error capturing the randomness of the choice-making process. In this model, the choice is: