The “Logit” class contains all the information needed to calibrate a Logit demand system and perform a merger 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
Let k denote the number of products produced by all firms.
A length k vector of product prices.
A length k vector of product margins, some of which may equal NA.
A length k vector of simulated pre-merger prices.
A length k vector of simulated post-merger prices.
A length k vector of starting values used to solve for equilibrium price.
An integer specifying the product index against which the mean values of all other products are normalized.
The share of customers that purchase any of the products included in the ‘prices’ vector.
The price of the outside good. Default is 0.
A list containing the coefficient on price (‘alpha’) and the vector of mean valuations (‘meanval’)
Antitrust, by class
Bertrand, 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.
signature(object = Logit, preMerger = TRUE,isMax=FALSE,...)
Compute either pre-merger or post-merger equilibrium
prices under the assumptions that consumer demand is Logit 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.
signature(object = Logit,prodIndex,...)
Calculates the price changes that a Hypothetical Monopolist would impose on its products relative to pre-merger prices.
signature(object = Logit, preMerger = TRUE,revenue = FALSE)
Compute either pre-merger or post-merger equilibrium shares under the assumptions that consumer demand is Logit and firms play a differentiated product Bertrand Nash pricing game. ‘revenue’ takes on a value of TRUE or FALSE, where TRUE calculates revenue shares, while FALSE calculates quantity shares.
signature(object = Logit)
Uncover Logit demand parameters. Assumes that firms are currently at equilibrium in a differentiated product Bertrand Nash pricing game.
signature(object = Logit)
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.
signature(object = Logit, preMerger = TRUE)
Computes a k x k matrix of own and cross-price elasticities.
Charles Taragin email@example.com
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