Description Usage Arguments Value Examples
Demands, Profits, Consumer Surpluses, Cost for Mix Bundling strategy
1 |
r1.r2 |
N valuations of good 1 and 2 - reserversion prices r1, r2 |
c.1 |
Parameter of production cost of good 1 |
c.2 |
Parameter of production cost of good 1 |
alfa |
Parameter of scale economics alfa = 0 –> CRS, alfa < 0 –> IRS, alfa < 0 –> DRS |
beta |
Parameter of sope economics beta = 0 –> neutral, beta > 0 complementary in proiduction, beta < 0 substitution in production |
teta |
Parameter of complementary and substitution of goods beta = 0 –> neutral, beta > 0 complementary in consumption, beta < 0 substitution in consumption |
FC |
Fixed Cost of production |
price.pc |
Monopoly price of good 1 , good 2 and bundle [price.pc <- c(p.1, p.2, p.b)] |
For a given: i. N valuations of r1 ,r2 ii. Monopoly prices p1, p2 iii. Technology profit - profit for Pure Bundle strategy c.s - Consumer surplus for Pure Componenets strategy t.c - cost of production no.buy - number of consumers which do not buy any good buy.b - number of consumers which buy bundle of good 1 and good 2
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 | c.1 <- 0.5 # parametr of cost of y1 (MC1 for beta = 0, alfa = 0)
c.2 <- 0.5 # parametr of cost of y2 (MC1 for beta = 0, alfa = 0)
beta <- 0 # parametr of scope economics
alfa <- 0 # parametr of scale economics
teta <- 0 # parametr of degree of contingency
FC <- 250 # Fix Costs
r1.r2 <- r1.r2.cable # Valuations of TV and Internet
price.mb <- c(20,40,50) # monopoly prices of TV, INTERNET and bundle TV and Internet
demand.m.b <- Profit.MB(r1.r2,price.mb, c.1, c.2, alfa, beta, teta, FC)
plot(r1.r2, type = "p", col="transparent", xlab="r1", ylab="r2", main = "MB" )
points(demand.m.b$no.buy , pch = 8, col = "gray80" )
points(demand.m.b$buy.1 , pch = 19, col = "gray50")
points(demand.m.b$buy.2 , pch = 18, col = "gray50")
points(demand.m.b$buy.1.2 , pch = 17, col = "gray10")
legend("topright", col = c("transparent","gray80","gray50 ", "gray50 ","gray10"),
pch=c(1,8,19,18,17), legend=c("", "no buy","buy y1", "buy y2" , "buy bundle"), bty="n")
abline(a=demand.m.b$p.b, b= -1, lty = 2)
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