Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/202400 
Year of Publication: 
2012
Series/Report no.: 
EAG Discussion Paper No. EAG 12-7
Publisher: 
U.S. Department of Justice, Antitrust Division, Economic Analysis Group (EAG), Washington, DC
Abstract: 
We show how observed product margins may be used in lieu of an observed market elasticity to calibrate parameters for two commonly used demand forms: the Almost Ideal Demand System (AIDS) and the multinomial logit. This technique is useful for antitrust practitioners interested in simulating the e ects of a merger, since estimates of product margins are often easier to obtain than estimates of market elasticities.
Subjects: 
demand calibration
multinomial logit
almost ideal demand system
AIDS
JEL: 
L40
K21
Document Type: 
Working Paper

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