Dealing with nested choice behavior in Ho Chi Minh City

Purpose This study aims to examine how the nested choice model explains selective behavior, specifically addressing the complexities involved in choosing between different types of hospitals (public, private and international). Design/methodology/approach A nested logit model (NLM) is used to capture the hierarchical decision-making process individuals follow when selecting both a hospital type and a specific hospital within that category. The analysis incorporates factors such as age, gender, education, income, drugstore availability, distance to hospitals and hospital quality ratings. Findings Hospital choice follows a two-stage nested structure. Higher hospital ratings increase the selection likelihood, whereas greater distance reduces it. Income positively influences the choice of international hospitals and negatively affects public hospital selection. Drugstore availability shows no significant effect. The model’s structure is validated through inclusive value consistency and by rejecting the independence of irrelevant alternatives assumption. Research limitations/implications The study provides a structured perspective on health-care choices but is limited by sample size and scope. Future research should expand across regions and include broader behavioral factors. Originality/value This study applies the NLM to health-care choices in an emerging market (Vietnam), offering novel insights into hierarchical decision-making and practical implications for health service planning.