Methods For Calculating Compensating Marginal Cost Reductions and Upwards Pricing Pressure Index (Bertrand)

Share:

Description

Calculate the marginal cost reductions necessary to restore premerger prices in a merger, or the Upwards Pricing Pressure Index for the products of merging firms playing a differentiated products Bertrand pricing game.

Usage

1
2
3
4
## S4 method for signature 'ANY'
cmcr(object)
## S4 method for signature 'ANY'
upp(object)

Arguments

object

An instance of one of the classes listed above.

Details

cmcr uses the results from the merger simulation and calibration methods associates with a particular class to compute the compensating marginal cost reduction (CMCR) for each of the merging parties' products.

Like cmcr, upp uses the results from the merger simulation and calibration to compute the upwards pricing pressure of the merger on each merging parties' products.

Value

cmcr returns a vector of length k equal to CMCR for the merging parties' products and 0 for all other products.

upp returns a vector of length k equal to the net UPP for the merging parties' products and 0 for all other products.

See Also

cmcr.bertrand is a function that calculates CMCR without the need to first calibrate a demand system and simulate a merger. Likewise,upp.bertrand calculates net UPP without the need to first calibrate a demand system and simulate a merger.

Want to suggest features or report bugs for rdrr.io? Use the GitHub issue tracker.