Profit.PC: Demands, Profits, Consumer Surpluses,for Pure Componenets...

In tomvar/bundling: Profitability of bundling strategies

Description

Demands, Profits, Consumer Surpluses,for Pure Componenets strategy

Usage

Profit.PC(r1.r2, price.pc, c.1, c.2, alfa, beta, teta, FC)

Arguments

r1.r2	N valuations of good 1 and 2 - reserversion prices r1, r2
price.pc	A vector of monopoly prices of good 1 and 2 [price.pc <- c(p1, p2)]
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

Value

For a given: i. N valuations of r1 ,r2 ii. Monopoly prices p1, p2 iii. Technology profit - profit for Pure Componenets 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.1 - number of consumers which buy good 1 buy.2 - number of consumers which buy good 2 buy.1.2 - number of consumers which buy separately 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.pc   <- c(20, 30) # Monopoly price of TV and Internet
demand.p.c <- Profit.PC(r1.r2,price.pc,c.1, c.2, alfa, beta, teta, FC)
plot(r1.r2, type = "p", col="transparent", xlab="r1 TV", ylab="r2 INTERNET", main = " PC")
points(demand.p.c$no.buy, pch = 8, col = "gray80")
points(demand.p.c$buy.1, pch = 17, col = "gray50 ")
points(demand.p.c$buy.2, pch = 19, col = "gray50")
points(demand.p.c$buy.1.2, pch = 18, col = "gray10")
legend("topright", col = c("transparent","gray80","gray50 ", "gray50 ","gray10"),
pch=c(1,8,17,19,18), legend=c("", "no buy","buy y1", "buy y2" , "buy y1&y2"), bty="n")
abline(h = demand.p.c$p.2, v = demand.p.c$p.1, lty = 2)

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