For Auction2ndCap, calcMC calculates (constant) marginal cost for each product. For those classes that do not require prices, returns a length-k vector of NAs when prices are not supplied.
For Bertrand, calcMC computes either pre- or post-merger marginal costs. Marginal costs are assumed to be constant. Post-merger marginal costs are equal to pre-merger marginal costs multiplied by 1+‘mcDelta’, a length-k vector of marginal cost changes. ‘mcDelta’ will typically be between 0 and 1.
For Auction2ndLogit, calcMC computes constant marginal costs impied by the model.
For Cournot, calcMC calculates marginal cost for each product.
calcdMC computes the derivative of either pre- or post-merger marginal costs. The derivative of Marginal costs is assumed to be constant. Post-merger marginal costs are equal to pre-merger marginal costs multiplied by 1+‘mcDelta’, a length-k vector of marginal cost changes. ‘mcDelta’ will typically be between 0 and 1.
calcVC computes either pre- or post-merger variable costs. Variable costs are assumed to be quadratic by default. Post-merger variable costs are equal to pre-merger variable costs multiplied by 1+‘mcDelta’, a length-k vector of marginal cost changes. ‘mcDelta’ will typically be between 0 and 1.
# S4 method for Bertrand
calcMC(object, preMerger = TRUE)# S4 method for VertBargBertLogit
calcMC(object, preMerger = TRUE)
# S4 method for Auction2ndCap
calcMC(object, t, preMerger = TRUE, exAnte = TRUE)
# S4 method for Cournot
calcMC(object, preMerger = TRUE)
# S4 method for Auction2ndLogit
calcMC(object, preMerger = TRUE, exAnte = FALSE)
# S4 method for Stackelberg
calcdMC(object, preMerger = TRUE)
# S4 method for Cournot
calcVC(object, preMerger = TRUE)
An instance of the respective class (see description for the classes)
If TRUE, the pre-merger ownership structure is used. If FALSE, the post-merger ownership structure is used. Default is TRUE.
The capacity profile of each supplier. Default is ‘preMerger’ capacities.
If ‘exAnte’ equals TRUE then the ex ante expected result for each firm is produced, while FALSE produces the expected result conditional on each firm winning the auction. Default is FALSE.