pyblp.ProblemResults.compute_costs

ProblemResults.compute_costs(firm_ids=None, ownership=None, market_id=None)

Estimate marginal costs, \(c\).

Marginal costs are computed with the \(\eta\)-markup equation in (7):

(1)\[c = p - \eta.\]

Parameters

• firm_ids (array-like, optional) – Firm IDs. By default, the firm_ids field of product_data in Problem will be used.

• ownership (array-like, optional) – Ownership matrices. By default, standard ownership matrices based on firm_ids will be used unless the ownership field of product_data in Problem was specified.

• market_id (object, optional) – ID of the market in which to compute marginal costs. By default, marginal costs are computed in all markets and stacked.

Returns

Marginal costs, \(c\).

Return type

ndarray

Examples

• Tutorial