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

The “Logit” class contains all the information needed to calibrate a Logit 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 `logit`

.

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

`prices`

:A length k vector of product prices.

`margins`

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

`normIndex`

:An integer specifying the product index against which the mean values of all other products are normalized.

`shareInside`

:The share of customers that purchase any of the products included in the ‘prices’ vector.

`priceOutside`

:The price of the outside good. Default is 0.

`slopes`

:A list containing the coefficient on price (‘alpha’) and the vector of mean valuations (‘meanval’)

`mktElast`

:A length 1 vector of market elasticities.

`priceStart`

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

`insideSize`

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

`mktSize`

:A positive number equal to total quantities (revenues for CES) pre-merger for all products in the simulations as well as the outside good.

Class `Bertrand`

, directly.
Class `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.

`calcPrices`

`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.

`calcPriceDeltaHypoMon`

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

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

`calcShares`

`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.

`calcSlopes`

`signature(object = Logit)`

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

`CV`

`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.

`elast`

`signature(object = Logit, preMerger = TRUE)`

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

Charles Taragin [email protected]

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

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

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