bargain_vert_sim_calibrate: Calibrate lambda for Nash bargain in vertical model with...

In mergersim: Merger Simulation and Calibration

Calibrate lambda for Nash bargain in vertical model with simultaneous timing

Description

Calibrate lambda for Nash bargain in vertical model with simultaneous timing

Usage

bargain_vert_sim_calibrate(
  lambda,
  price_w,
  own_down,
  own_up,
  alpha,
  delta,
  cost_w,
  cost_r,
  price_r
)

Arguments

lambda	Bargaining power of the buyer/retailer
price_w	Upstream or wholesale prices
own_down	Ownership matrix for downstream firms
own_up	Ownership matrix for upstream firms
alpha	Price coefficient
delta	Mean values
cost_w	Marginal costs for upstream firm for each product
cost_r	Marginal costs for downstream firm for each product
price_r	Retail prices

Details

This function can be used to calibrate the bargaining parameter in a Nash bargain which is the upstream market of a vertical supply chain. Assumes logit demand.

Value

The value of objective function

Examples

bargain_vert_sim_calibrate(lambda = 0.4,
price_w = c(1.6, 1.6, 1.6, 1.6, 1.6, 1.6),
own_down = paste0("R",rep(c(1,2,3),each=2)),
own_up = paste0("W",rep(c(1,2),3)),
alpha = -0.9,
delta = c(0.2, 0.3, 0.9, 1.0, 0.8, 0.9),
cost_w = rep(.2, times = 6),
cost_r = rep(.1, times = 6),
price_r = c(2.9, 2.9, 3.0, 3.0, 3.0, 3.0))

mergersim documentation built on July 21, 2026, 5:09 p.m.