antitrust (version 0.99.10)

Auction2ndLogit-class: Class “Auction2ndLogit”

Description

The “Auction2ndLogit” class contains all the information needed to calibrate a Logit demand system and perform a merger simulation analysis under the assumption that firms are setting offers in a 2nd-score auction.

Objects from the Class

Objects can be created by using the constructor function auction2nd.logit.

Extends

Class '>Logit, directly. Class '>Bertrand, by class '>Logit, distance 2. Class '>Antitrust, by class '>Bertrand, distance 3.

Methods

For all of methods containing the ‘preMerger’ argument, ‘preMerger’ takes on a value of TRUE or FALSE, where TRUE invokes the method using the pre-merger ownership structure, while FALSE invokes the method using the post-merger ownership structure.

calcSlopes

signature(object)

Uncover Logit ALM demand parameters. Assumes that firms are currently at equilibrium in a 2nd-score auction.

calcMargins

signature(object)

Compute model margins.

calcMC

signature(object)

Compute constant marginal costs impied by the model.

calcShares

signature(object)

Compute logit shares using cost estimates.

calcSlopes

signature(object)

Uncover Logit ALM demand parameters. Assumes that firms are currently at equilibrium in a 2nd-score auction.

cmcr

signature(object)

Compensating marginal cost reduction is not sensible in a 2nd-score auction. Method returns error.

upp

signature(object)

upward pricing pressure is not sensible in a 2nd-score auction. Method returns error.

CV

signature(object)

Compensating variation is simply the weighted average of the price changes.

calcPricesHypoMon

signature(object)

Computes prices for a subset of firms under the control of a hypothetical monopolist playing a 2nd score auction.

Examples

# NOT RUN {
showClass("Auction2ndLogit")           # get a detailed description of the class
showMethods(classes="Auction2ndLogit") # show all methods defined for the class
# }