Auction-Classes: Class "Auction"

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Class “Auction”

Description

The “Auction2ndCap” class contains all the information needed to calibrate a 2nd price auction with capacity constraints

The “Auction2ndLogit” class contains all the information needed to calibrate a Logit demand system and perform a merger simulation analysis under the assumption that firms are setting offers in a 2nd-score auction.

The “Auction2ndLogitNests” class contains all the information needed to calibrate a Nested Logit demand system and perform a merger simulation analysis under the assumption that firms are setting offers in a 2nd-score auction.

The “Auction2ndLogitALM” class contains all the information needed to calibrate a Logit demand system with unobserved outside share and perform a merger simulation analysis under the assumption that firms are setting offers in a 2nd-score auction.

Below, let k denote the number of firms.

Slots

capacities

A length k vector of firm capacities.

margins

A length k vector of product margins, some of which may equal NA.

prices

A length k vector of product prices.

reserve

A length 1 vector equal to observed buyer's reserve price. May equal NA.

shareInside

A length 1 vector equal to the probability that a buyer does not select the outside option. May equal NA.

sellerCostCDF

A length 1 character vector equal to the name of the function that calculates the Cumulative Distribution (CDF) of SellerCosts.

sellerCostCDFLowerTail

A length 1 logical vector equal to TRUE if the probabilities are P[X <= x], otherwise, P[X > x].

sellerCostPDF

A function returning the Probability Density of Seller Costs.

sellerCostBounds

The bounds on the seller's CDF.

sellerCostParms

The parameters of the seller's CDF.

buyerValuation

Buyer's self-supply cost.

reservePre

Buyer's optimal pre-merger reservation price.

reservePost

Buyer's optimal post-merger reservation price.

mcDelta

A length k vector equal to the proportional change in a firm's capacity following the merger.

parmsStart

A vector of starting values.

Objects from the Class

Auction2ndCap: Objects can be created by using the constructor function auction2nd.cap.

Auction2ndLogit: Objects can be created by using the constructor function auction2nd.logit.

Auction2ndLogitNests: Objects can be created by using the constructor function auction2nd.logit.nests.

Auction2ndLogitALM: Objects can be created by using the constructor function auction2nd.logit.alm.

Extends

Auction2ndCap: Class Antitrust, directly.

Auction2ndLogit: Class Logit, directly. Class Bertrand, by class Logit, distance 2. Class Antitrust, by class Bertrand, distance 3.

Auction2ndLogitALM: Class Auction2ndLogit, directly. Class Logit, distance 2. Class Bertrand, by class Logit, distance 3. Class Antitrust, by class Bertrand, distance 4.

Author(s)

Charles Taragin [e-mail]

Examples

showClass("Auction2ndCap")           # get a detailed description of the class
showClass("Auction2ndLogit")           # get a detailed description of the class
showClass("Auction2ndLogitALM")           # get a detailed description of the class

antitrust documentation built on Aug. 24, 2022, 9:05 a.m.