pyblp.ProblemResults.compute_markups

ProblemResults.compute_markups(prices=None, costs=None, market_id=None)

Estimate markups, \(\mathscr{M}\).

The markup of product \(j\) in market \(t\) is

(1)\[\mathscr{M}_{jt} = \frac{p_{jt} - c_{jt}}{p_{jt}}.\]

Parameters

• prices (array-like, optional) – Prices, \(p\), such as equilibrium prices, \(p^*\), computed by ProblemResults.compute_prices(). By default, unchanged prices are used.

• costs (array-like) – Marginal costs, \(c\). By default, marginal costs are computed with ProblemResults.compute_costs(). Costs under a changed ownership structure can be computed by specifying the firm_ids or ownership arguments of ProblemResults.compute_costs().

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

Returns

Estimated markups, \(\mathscr{M}\).

Return type

ndarray

Examples

• Tutorial