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 Bertrand
cmcr(object, market = FALSE, levels = FALSE, rel = c("cost", "price"))# S4 method for Cournot
cmcr(object, market = TRUE, levels = FALSE, rel = c("cost", "price"))
# S4 method for AIDS
cmcr(object, market = FALSE, rel = c("cost", "price"))
# S4 method for Auction2ndLogit
cmcr(object, market = FALSE, levels = FALSE, rel = c("cost", "price"), ...)
cmcr returns a vector of length k equal to CMCR for the
merging parties' products and 0 for all other products.
An instance of one of the classes listed above.
If TRUE, calculates (post-merger) share-weighted average of metric. Default is FALSE.
If TRUE calculates CMCR in levels rather than as a percentage of pre-merger costs. Default is FALSE.
A length 1 character vector indicating whether CMCR should be calculated relative to pre-merger cost (``cost'') or pre-merger price (``price''), Default is ``cost''. Ignored when levels is TRUE.
Additional arguments to pass to cmcr.
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.
cmcr.bertrand is a function that calculates CMCR
without the need to first calibrate a demand system and simulate a
merger.