guide-inequalities

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Moment Inequality Function

Moment Inequality Function

m_function(
  theta,
  w_data,
  a_matrix,
  j0_vector,
  v_bar,
  grid0 = "all",
  iv_matrix = NULL,
  dist_data = NULL
)

Arguments

theta

a vector containing the parameters of interest.

w_data

an n x k matrix of product portfolio data.

a_matrix

an n x (num_products + 1) matrix of estimated revenue differentials.

j0_vector

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

v_bar

a tuning parameter as in Assumption 4.2.

grid0

optional vector of length num_products containing the indices of the products in the market.

iv_matrix

optional n x d_iv matrix of instruments.

dist_data

an n x (J + 1) matrix of distances from the product factories to the cities.

Value

a matrix of the moment functions with n rows.