guide-inequalities

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Lower Moment Inequality Function

Lower Moment Inequality Function

m_fun_lower(
  theta,
  d_matrix,
  a_subset,
  j0_vector,
  v_bar,
  z_matrix = 1,
  dist_subset = NULL
)

Arguments

theta

a vector containing the parameters of interest.

d_matrix

an n x j0 matrix of product portfolio in each market.

a_subset

an n x j0 matrix of estimated revenue differential in each market.

j0_vector

a j0 x 2 matrix of ownership by the two firms.

v_bar

a tuning parameter as in Assumption 4.2.

z_matrix

an optional n x j0 matrix of instruments in each market.

dist_subset

an optional n x j0 matrix of distance between products in each market.

Value

a j0-dimensional vector of lower moment inequalities.