Profit.PB: Demands, Profits, Consumer Surpluses, Cost for Pure Bundling...

In tomvar/bundling: Profitability of bundling strategies

Description

Demands, Profits, Consumer Surpluses, Cost for Pure Bundling strategy

Usage

Profit.PB(r1.r2, prices.pb, c.1, c.2, alfa, beta, teta, FC)

Arguments

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.pb	Monopoly price of bundle [price.pb <- c(p.b)]

Value

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

Examples

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$p.b, b= -1, lty = 2)
abline(h = demand.m.b$p.1, v = demand.m.b$p.2, lty = 2)

tomvar/bundling documentation built on May 31, 2019, 6:20 p.m.