Merger Simulation with Nested Logit Demand - Implementation using Stata

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.

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Year of publication:	2013-04-15
Authors:	Björnerstedt, Jonas ; Verboven, Frank
Institutions:	Konkurrensverket, Government of Sweden
Subject:	mergersim \| merger simulation \| aggregate nested logit model \| unit demand \| constant expenditures demand

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Extent:	application/pdf
Series:	Konkurrensverket Working Paper Series in Law and Economics.
Type of publication:	Book / Working Paper
Notes:	The text is part of a series Working Paper Series in Law and Economics Number 2013:2 20 pages
Classification:	C63 - Computational Techniques ; C87 - Econometric Software ; D40 - Market Structure and Pricing. General ; L10 - Market Structure, Firm Strategy, and Market Performance. General
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10011277365