copyright Luke Froeb, 1996-2001, mail, vitae. This code may be used and distributed but may not be sold
without written permission from the author.
Directions for downloading
Mathematica code is written in machine independent ascii (simple text files).
- Choose "save as text" from your browser menu to save on your local hard disc.
- Open Mathematica
- From the menu bar, choose File:Open to open the documents in Mathematica.
Merger Simulation Software
- SimMerger Lite is a Mathematica 3.0 Notebook.
This is a "lite" version of software written for the Department of Justice to
simulate the effects of mergers with Logit, AIDS (Almost Ideal Demand System), Linear, and
Constant Elasticity Demand Curves. It is quite flexible and allows one to simulate
all kinds of different scenarios using these four demand curves. It differs from the
Department of Justice version of SimMerger, in that it does not permit nests in the
logit demand specification, and it does not permit income effects in the AIDS model.
Instead it uses a "flat" logit specification and what we call a SAIDS, or
Simplified AIDS model. Copyright Crooke, Froeb, & Tschantz, 1998. (See the
Froeb, Crooke, Tschantz & Werden, 1998 paper for reference).
- Training Exercises for Merger Simulation
- Merger.m is a Mathematica 2.2 "package" of
subroutines from. It is "called" by the following the notebook, simple.ma. This is the code that appeared in Hal
Varian's Computational Economics with Mathematica book.
- simple.ma is a Mathematica 2.2 notebook that demonstrates
the "top level" programs for simulating the effects of mergers using Logit and
nested Logit Demand curves. It "calls" the merger package above.
Maximum Likelihood Estimation Software
- ML is a Mathematica 3.0 notebook and package. This is a set
of maximum likelihood estimation routines with a collection of examples, including a
multivariate logit with changing choice set..
- Logit.ma, is a Mathematica 2.2 notebook, written by Hal
Varian, demonstrating maximum likelihood estimation of a two choice logit model from
individual data on choices.
- Froeb, Luke, Steven Tschantz, Philip Crooke, and Gregory Werden "The Effects of
Assumed Demand Form on Simulated Post Merger Equilibria," Owen Working paper (1997).
- Werden, Gregory, and Luke Froeb, "The Entry-Inducing Effects of Horizontal
Mergers," Journal of Industrial
- Froeb, Luke, Gregory Werden, and Timothy Tardiff, "The Demsetz Postulate and the
Effects of Mergers in Differentiated Products Industries," Economic Inputs, Legal
Outputs: The Role of Economists in Modern Antitrust , London: John Wiley & Sons,
edited by Fred McChesney, 1998.
- G. Werden & L. Froeb, "The Effects of Mergers in Differentiated Products
Industries: Structural Merger Policy and the Logit Model," Journal of Law,
Economics, & Organization, 10 (1994) pp. 407-426.
- L. Froeb, and G. Werden, "Simulating Mergers among Noncooperative
Oligopolists," in Computational Economics and Finance: Modeling and
Analysis with Mathematica, vol. 2, edited by Hal Varian ( TELOS, Springer-Verlag) 1996.
- G. Werden & L. Froeb, "Simulation as an Alternative to Structural Merger Policy
in Differentiated Products Industries," invited chapter in The Economics of the
Antitrust Process, edited by Malcolm Coate and Andrew Kleit, (forthcoming).
- G. Werden, L. Froeb, and T. Tardiff, "The Use of the Logit Model in Applied
Industrial Organization," International Journal of the Economics of Business,
vol. 3, no. 1, (1996) pp. 85-107.