AIDS-class: Class "AIDS"

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

Description

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 from the Class

Objects can be created by using the constructor function aids.

Slots

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.

Extends

Class Linear, directly. Class Bertrand, by class “Linear”, distance 2.

Methods

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.

Author(s)

Charles Taragin [email protected]

Examples

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

Example output

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.