Calculate the own and cross-price elasticity between any two products in the market.
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object |
An instance of one of the classes listed above. |
preMerger |
If TRUE, calculates pre-merger price elasticities. If FALSE, calculates post-merger price elasticities. Default is TRUE. |
market |
If TRUE, calculates the market (aggregate) elasticity. If FALSE, calculates matrix of own- and cross-price elasticities. Default is FALSE. |
When ‘market’ is FALSE, this method computes the matrix of own and cross-price elasticities. Element i,j of this matrix is the percentage change in the demand for good i from a small change in the price of good j. When ‘market’ is TRUE, this method computes the market (aggregate) elasticities using share-weighted prices.
When ‘preMerger’ is TRUE, elasticities are calculated at pre-merger equilibrium prices and shares, and when ‘preMerger’ is FALSE, they are calculated at post-merger equilibrium prices and shares.
returns a k x k matrix of own- and cross-price elasticities, where k is the number of products in the market
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