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antitrust (version 0.99.10)

LogitCap-class: Class “LogitCap” and “LogitCapALM”

Description

The “LogitCap” class contains all the information needed to calibrate a Logit demand system and perform a merger simulation analysis under the assumption that firms are playing a differentiated products Bertrand pricing game with capacity constraints.“LogitCapALM” extends “LogitCap” to allow for an unobserved outside share.

Arguments

Objects from the Class

Objects can be created by using the constructor function logit.cap and logit.cap.alm.

Slots

Let k denote the number of products produced by all firms.

capacitiesPre:

A length k vector whose elements equal pre-merger product capacities.

capacitiesPost:

A length k vector whose elements equal post-merger product capacities.

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.

calcPrices

signature(object, preMerger = TRUE)

Compute either pre-merger or post-merger equilibrium shares under the assumptions that consumer demand is Logit and firms play a differentiated product Bertrand Nash pricing game with capacity constraints.
calcQuantities

signature(object, preMerger = TRUE)

Compute either pre-merger or post-merger equilibrium quantities under the assumptions that consumer demand is Linear and firms play a differentiated product Bertrand Nash pricing game.
calcMargins

signature(object, preMerger = TRUE)

Computes equilibrium product margins assuming that firms are playing a Nash-Bertrand pricing game with capacity constraints. Note that margins for capacity constrained firms are not identified from the firm's first-order conditions, and so must be supplied by the user.

calcSlopes

signature(object)

Uncover Logit demand parameters. Assumes that firms are currently at equilibrium in a differentiated product Bertrand Nash pricing game with capacity constraints.

Examples

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

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