ssbargain_foc: Second score bargaining first-order conditions

In mergersim: Merger Simulation and Calibration

Second score bargaining first-order conditions

Description

Second score bargaining first-order conditions

Usage

ssbargain_foc(price, own, alpha, delta, cost, lambda, includeMUI = TRUE)

Arguments

price	Price
own	Ownership matrix
alpha	Price coefficient
delta	Mean values
cost	Marginal costs for each product
lambda	Bargaining power of the buyer
includeMUI	logical; TO BE ADDED

Details

This function calculate the first-order conditions from a bargaining model that nests the second score auction.

Value

The first-order conditions

Examples

alpha  <- -0.9
delta <- c(.81,.93,.82)
own_pre = diag(3)
p0 <- c(.05, .34, .33)
c_j <- c(.05,.31,.30)

ssbargain_foc(price = p0,own = own_pre,alpha=alpha,delta=delta,cost=c_j,
              lambda = 0.5)

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