Does Merger Simulation Work? Evidence from the Swedish Analgesics Market

2016 ◽  
Vol 8 (3) ◽  
pp. 125-164 ◽  
Author(s):  
Jonas Björnerstedt ◽  
Frank Verboven
Keyword(s):  
Simulation Model ◽  
Price Increase ◽  
Supply Side ◽  
Cost Increase ◽  
Partial Collusion ◽  
Merger Simulation

We analyze a large merger in the Swedish market for analgesics (painkillers). The merging firms raised prices by 40 percent, and some outsiders raised prices by more than 10 percent. We confront these changes with predictions from a merger simulation model. With basic supply side assumptions, the models correctly or moderately underpredict the merging firms' price increase. However, they predict a larger price increase for the smaller firm, which was not the case in practice, and they underpredict the outsiders' responses. We consider several supply side explanations: a plausible cost increase after the merger and the possibility of partial collusion. (JEL C63, D22, G34, L11, L25, L65)

scholarly journals A Bottom-Up Supply-Side Simulation Model of Residential and Community Energy Systems using System Dynamics

2021 ◽  
Author(s):  
Bilal Bugaje ◽  
◽  
Peter Rutherford ◽  
Mike Clifford ◽  
◽  
...  
Keyword(s):  
System Dynamics ◽  
Simulation Model ◽  
Energy Systems ◽  
Supply Side ◽  
Bottom Up

scholarly journals Merger Simulation with Brand-Level Margin Data: Extending PCAIDS with Nests

2004 ◽  
Vol 4 (1) ◽  
Author(s):  
Roy J. Epstein ◽  
Daniel L. Rubinfeld
Keyword(s):  
Simulation Model ◽  
Profit Margin ◽  
Comparable Data ◽  
Scanner Data ◽  
Econometric Estimation ◽  
Aids Model ◽  
Price Elasticities ◽  
National Borders ◽  
Merger Simulation

Abstract We present a method to calibrate empirically the demand parameters in a merger simulation model by using brand-level profit margin data. While the approach can be generalized, we develop these ideas within a particular framework - the PCAIDS (proportionality-calibrated AIDS) model. We show that the brand-level margins effectively define product "nests" (products that are especially close substitutes) and substantially increase the flexibility of PCAIDS for modeling critical own- and cross-price elasticities. The model is particularly valuable for transactions at the wholesale level (where scanner data do not exist) and for geographic markets that span national borders (where comparable data may not be available), since other methods to derive elasticities, particularly those based on econometric estimation, may not be possible or may not be reliable.

A Model-Based Exploration and Policy Analysis Related to Prostitution and Human Trafficking

2014 ◽  
Vol 3 (4) ◽  
pp. 36-64 ◽  
Author(s):  
András Kővári ◽  
Erik Pruyt
Keyword(s):  
System Dynamics ◽  
Policy Analysis ◽  
Simulation Model ◽  
Human Trafficking ◽  
Simulation Models ◽  
Dynamics Simulation ◽  
Supply Side ◽  
Demand Side ◽  
Deep Uncertainty ◽  
Model Based

This paper presents a model-based exploration and policy analysis related to prostitution and prostitution-related human trafficking. After a brief introduction to prostitution and prostitution-related human trafficking, the paper zooms in on the Dutch situation. A System Dynamics simulation model related to the Dutch situation developed to explore and provide policy insights is subsequently presented. Using the simulation model, policies are first of all tested, and preliminary conclusions are drawn. These preliminary conclusions are further tested under deep uncertainty, using variants of the simulation models. The final conclusions are that supply side measures alone are counter-productive and that demand side measures are necessary but insufficient to solve prostitution-related human trafficking.

scholarly journals Impact of Different Importation Policies Scenarios on Beef Industry in Peninsular Malaysia

2021 ◽  
Vol 7 (1) ◽  
pp. 24-35
Author(s):  
Mark Buda ◽  
Zainalabidin Mohamed
Keyword(s):  
Simulation Model ◽  
Peninsular Malaysia ◽  
Retail Price ◽  
Market Model ◽  
Supply Side ◽  
Beef Production ◽  
Beef Industry ◽  
Feeder Cattle ◽  
Self Sufficiency ◽  
Policy Scenarios

The supply side of beef industry has not responded well to the rising demand for beef. This industry is still highly dependent on imported beef and feeder cattle for beef production to meet the local demand. The objective of this study is to analyse the impacts of different importation policy scenarios on beef industry in Peninsular Malaysia. A simulation model that based on estimated market model is used to analyse the policy. The findings imply that the number of import cattle for breeding (ICTB) should be maintained, while import of cattle for slaughter or feeder cattle should be increased by 20%. This will improve beef self-sufficiency level while stabilizing beef retail price.

Novel simulation model for many-body multipole dispersion interactions

1998 ◽  
Vol 94 (3) ◽  
pp. 417-433 ◽  
Author(s):  
MARTIN VAN DER HOEF ◽  
PAUL MADDEN
Keyword(s):  
Simulation Model ◽  
Dispersion Interactions ◽  
Many Body
Sign in / Sign up

Export Citation Format

Share Document