MarginsAG-Methods: Methods for Calculating Prices and Margins Using Aggregative...

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Methods for Calculating Prices and Margins Using Aggregative Games

Description

Computes equilibrium product margins and prices using the aggregative games technique described in Nocke and Schutz (2018). Assumes that firms are playing a Nash-Bertrand pricing game with either Logit or CES demand

Usage

## S4 method for signature 'Logit'
calcMarginsAG(object, preMerger = TRUE, level = FALSE)

## S4 method for signature 'CES'
calcMarginsAG(object, preMerger = TRUE, level = FALSE)

## S4 method for signature 'Logit'
calcPricesAG(object, preMerger = TRUE, isMax = FALSE, subset)

Arguments

object	An instance of one of the classes listed above.
preMerger	If TRUE, returns pre-merger outcome. If FALSE, returns post-merger outcome. Default is TRUE.
level	IF TRUE, return margins in dollars. If FALSE, returns margins in proportions. Default for most classes is FALSE.
isMax	If TRUE, a check is run to determine if the calculated equilibrium price vector locally maximizes profits. Default is FALSE.
subset	A vector whose length equals the number of products where each element equals TRUE if the product indexed by that element should be included in the post-merger simulation and FALSE if it should be excluded. Default is a length k vector of TRUE.

References

Nocke, V. and Schutz, N. (2018), Multiproduct-Firm Oligopoly: An Aggregative Games Approach. Econometrica, 86: 523-557.\Sexpr[results=rd]{tools:::Rd_expr_doi("10.3982/ECTA14720")}/

antitrust documentation built on Sept. 13, 2025, 9:10 a.m.