Merger Simulation with Nested Logit Demand - Implementation using Stata
Jonas Björnerstedt (jonas.bjornerstedt@konj.se) and
Frank Verboven
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Jonas Björnerstedt: Swedish Competition Authority, Postal: 10385 Stockholm, Sweden
No 2013:2, Konkurrensverket Working Paper Series in Law and Economics from Konkurrensverket (Swedish Competition Authority)
Abstract:
In this article we show how to implement merger simulation in Stata after estimating an aggregate nested logit demand system with a linear regression model. We also show how to implement merger simulation when the demand parameters are not estimated, but instead calibrated to be consistent with outside information on average price elasticities and profit margins.
Keywords: mergersim; merger simulation; aggregate nested logit model; unit demand; constant expenditures demand (search for similar items in EconPapers)
JEL-codes: C63 C87 D40 L10 (search for similar items in EconPapers)
Pages: 20 pages
Date: 2013-04-15
New Economics Papers: this item is included in nep-cmp, nep-com and nep-dcm
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Citations: View citations in EconPapers (2)
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Persistent link: https://EconPapers.repec.org/RePEc:hhs:kkveco:2013_002
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