Learn R Programming

antitrust (version 0.9)

diversion-methods: Methods For Calculating Diversion

Description

Calculate the diversion matrix between any two products in the market.

Usage

## S3 method for class 'ANY':
diversion(object,preMerger=TRUE,revenue=FALSE)

Arguments

object
An instance of one of the classes listed above.
preMerger
If TRUE, calculates pre-merger price elasticities. If FALSE, calculates post-merger price elasticities. Default is TRUE.
revenue
If TRUE, calculates revenue diversion. If FALSE, calculates quantity diversion. Default is TRUE for `Bertrand' and FALSE for `AIDS'.

Value

  • returns a k x k matrix of diversion ratios, where the i,jth element is the diversion from i to j.