Calculate the marginal cost reductions necessary to restore premerger prices in a merger, or the Upwards Pricing Pressure Index for the products of merging firms playing a differentiated products Bertrand pricing game.
# S4 method for ANY
cmcr(object,market=FALSE)
# S4 method for ANY
upp(object)An instance of one of the classes listed above.
If TRUE, calculates (post-merger) share-weighted average of metric. Default is FALSE.
cmcr returns a vector of length k equal to CMCR for the
merging parties' products and 0 for all other products.
upp returns a vector of length k equal to the net UPP for the
merging parties' products and 0 for all other products.
cmcr uses the results from the merger simulation and calibration
methods associates with a particular class to compute the compensating
marginal cost reduction (CMCR) for each of the merging parties' products.
Like cmcr, upp uses the results from the merger simulation and
calibration to compute the upwards pricing pressure of the merger on
each merging parties' products.
cmcr.bertrand is a function that calculates CMCR
without the need to first calibrate a demand system and simulate a
merger. Likewise,upp.bertrand calculates net UPP
without the need to first calibrate a demand
system and simulate a merger.