Description Objects from the Class Slots Extends Methods Author(s) Examples

The “AIDS” class contains all the information needed to calibrate a AIDS demand system and perform a merger simulation analysis under the assumption that firms are playing a differentiated products Bertrand pricing game.

Objects can be created by using the constructor function `aids`

.

Let k denote the number of products produced by all firms.

`priceStart`

:A length-k vector of starting prices for the non-linear solver

`insideSize`

:A positive number equal to total pre-merger revenues for all products included in the simulation.

`mktElast`

:A negative number equal to the industry pre-merger price elasticity.

`parmStart`

:A length 2 vector who elements equal to an initial of a single diagonal element of the matrix of slope coefficients, as well as the market elasticity.

`priceDelta`

:A length k vector containing the simulated price effects from the merger.

Class `Linear`

, directly.
Class `Bertrand`

, by class “Linear”, distance 2.

For all of methods containing the ‘preMerger’ argument, ‘preMerger’ takes on a value of TRUE or FALSE, where TRUE invokes the method using the pre-merger ownership structure, while FALSE invokes the method using the post-merger ownership structure.

`calcMargins`

`signature(object , preMerger=TRUE)`

Calculates pre-merger or post-merger equilibrium margins.

`calcPriceDelta`

`signature(object,isMax=FALSE,...)`

Computes the proportional change in each products' price from the
merger under the assumptions that consumer demand is AIDS and firms play a differentiated product
Bertrand Nash pricing game.When isMax equals TRUE, a check is run
to determine if the calculated equilibrium price vector locally maximizes
profits. ‘...’ may be used to change the
default values of `BBsolve`

, the non-linear equation solver.

`calcPrices`

`signature(object, preMerger = TRUE)`

Compute either pre-merger or post-merger equilibrium prices under the assumptions that consumer demand is AIDS and firms play a differentiated product Bertrand Nash pricing game. return a vector of length-k vector of NAs if user did not supply prices.

`calcPriceDeltaHypoMon`

`signature(object,prodIndex,...)`

Calculates the price changes that a Hypothetical Monopolist would impose on its products relative to pre-merger prices.

- calcShares
`signature(object, preMerger = TRUE)`

Computes either pre-merger or post-merger equilibrium quantity shares under the assumptions that consumer demand is AIDS and firms play a differentiated product Bertrand Nash pricing game.

`calcSlopes`

`signature(object)`

Uncover AIDS demand parameters. Assumes that firms are currently at equilibrium in a differentiated product Bertrand Nash pricing game.

`cmcr`

`signature(object)`

Calculates compensated marginal cost reduction, the percentage decrease in the marginal costs of the merging parties' products needed to offset a post-merger price increase.

`CV`

`signature(object)`

Calculate the amount of money a representative consumer would need to be paid to be just as well off as they were before the merger. Requires a length-k vector of pre-merger prices.

`diversion`

`signature(object, preMerger= TRUE)`

Computes a k x k matrix of diversion ratios.

`elast`

`signature(object , preMerger = TRUE)`

Computes a k x k matrix of own and cross-price elasticities.

Charles Taragin [email protected]

1 2 | ```
showClass("AIDS") # get a detailed description of the class
showMethods(classes="AIDS") # show all methods defined for the class
``` |

```
Class "AIDS" [package "antitrust"]
Slots:
Name: priceStart priceDelta mktElast intercepts
Class: numeric numeric numeric vector
Name: prices quantities margins diversion
Class: vector numeric numeric matrix
Name: symmetry shares mcDelta slopes
Class: logical numeric numeric matrixOrList
Name: subset ownerPre ownerPost pricePre
Class: logical matrixOrVector matrixOrVector numeric
Name: pricePost mcPre mcPost labels
Class: numeric numeric numeric character
Extends:
Class "Linear", directly
Class "Bertrand", by class "Linear", distance 2
Class "Antitrust", by class "Linear", distance 3
Known Subclasses:
Class "PCAIDS", directly
Class "PCAIDSNests", by class "PCAIDS", distance 2
Function ".DollarNames":
<not an S4 generic function>
Function: CV (package antitrust)
object="AIDS"
Function: calcMargins (package antitrust)
object="AIDS"
Function: calcPriceDelta (package antitrust)
object="AIDS"
Function: calcPriceDeltaHypoMon (package antitrust)
object="AIDS"
Function: calcPrices (package antitrust)
object="AIDS"
Function: calcPricesHypoMon (package antitrust)
object="AIDS"
Function: calcShares (package antitrust)
object="AIDS"
Function: calcSlopes (package antitrust)
object="AIDS"
Function: cmcr (package antitrust)
object="AIDS"
Function "complete":
<not an S4 generic function>
Function "coords":
<not an S4 generic function>
Function: diversion (package antitrust)
object="AIDS"
Function: diversionHypoMon (package antitrust)
object="AIDS"
Function: elast (package antitrust)
object="AIDS"
Function "formals<-":
<not an S4 generic function>
Function "functions":
<not an S4 generic function>
Function "prompt":
<not an S4 generic function>
Function: show (package methods)
object="AIDS"
Function: summary (package base)
object="AIDS"
Function: upp (package antitrust)
object="AIDS"
```

antitrust documentation built on June 10, 2018, 5:04 p.m.

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