diversion_calc: Market share calculations

In mergersim: Merger Simulation and Calibration

Market share calculations

Description

Calculates choice probabilities based on logit or generalized nested logit demand parameters

Usage

diversion_calc(
  price,
  alpha,
  delta,
  nest_allocation = NA,
  mu = NA,
  marginal = FALSE,
  outsideOption = TRUE
)

Arguments

price	Price
alpha	Price coefficient
delta	Mean values
nest_allocation	For generalized nested logit demand, a J-by-K matrix where each element (j,k) designates the membership of good j in nest k. Rows should sum to 1.
mu	Nesting parameters for each nest
marginal	logical; if True, diversions are calculated as diversions from a small price increase. If False, diversions are calculated as second choice diversions.
outsideOption	logical; whether to include an outside option in choice set. Default is TRUE.

Details

This function calculates choice probabilities based on demand parameters for a logit or generalized nested logit demand system

Value

Returns vector of choice probabilities for each good

Examples

diversion_calc(price=c(2.1,2.4,2.1),alpha=-0.9,delta=c(.81,.93,.82))

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