The competitiontoolbox RShiny application is a browser-based user interface for functionality embedded in the antitrust and trade R packages. It allows users to
Users may input different simulation parameters on the lefthand-side panels found in the pages linked by the tabs above. These parameters include the assumed competitive environment and market demand system. Users may also edit market conditions listed in the Inputs tables such as firm prices, margins, and shares. Both horizontal and supply chain mergers are available for simulation, including upstream, downstream, and vertical mergers. Example inputs for each type of simulation are provided to users by default in the Inputs table.
To better understand the types of predictions that these models make, users may also view the distribution of outcomes from thousands of numerical simulations. See Taragin and Loudermilk (2019) and Sheu and Taragin (2020) for more details.
To simulate a horizontal merger, proceed to Horizontal listed under the Mergers tab.
To simulate a merger in a supply chain, proceed to Vertical listed under the Mergers tab.
To numerically simulate a horizontal merger, proceed to Horizontal listed under the Numerical Simulations tab.
To numerically simulate a merger in a supply chain, proceed to Vertical listed under the Numerical Simulations tab.
To simulate a tariff, proceed to Tariffs listed under the Trade tab.
To simulate a quota, proceed to Quotas listed under the Trade tab.
When run, each simulation outputs a series of tabs that provide detailed information on the simulated merger, tariff, or quota. They are:
Luke Froeb and Steven Tschantz (Vanderbilt University) have developed a vertical merger simulator app that allows users to compare simulated vertical merger effects across different barganining models, including Nash-in-Nash two-part pricing and various models of derived demand. The app allows for a competitive landscape consisting of either one upstream firm and two downstream firms, or vice-versa.
This vertical simulator accompanies Boshoff, Froeb, Minnie, and Tschantz (2020), which provides theoretical frameworks for the various models included in the simulator.