BLP Simulation

Simulate BLP-type equilibrium data for testing and Monte Carlo studies.

Super class

rblp::BLPEconomy -> BLPSimulation

Public fields

beta

True demand linear parameters

sigma

True Cholesky root of RC covariance

pi

True demographics interaction

gamma

True supply parameters

rho

True nesting parameters

xi

Demand structural errors

omega

Supply structural errors

Methods

Public methods

• BLPSimulation$new()

• BLPSimulation$replace_endogenous()

• BLPSimulation$print()

• BLPSimulation$clone()

Inherited methods

• rblp::BLPEconomy$compute_logit_delta()
• rblp::BLPEconomy$get_market_data()

---

Method new()

Create a BLP simulation

Usage

BLPSimulation$new(
  product_formulations,
  product_data,
  beta,
  sigma = NULL,
  pi = NULL,
  gamma = NULL,
  rho = NULL,
  agent_formulation = NULL,
  agent_data = NULL,
  integration = NULL,
  xi = NULL,
  omega = NULL,
  xi_variance = 1,
  omega_variance = 1,
  correlation = 0.9,
  rc_types = NULL,
  costs_type = "linear",
  seed = NULL
)

Arguments

product_formulations

List of BLPFormulation objects (1-3)

product_data

Data frame with market_ids, firm_ids, and characteristics

beta

Demand linear coefficients (required)

sigma

Optional K2 x K2 Cholesky root

pi

Optional K2 x D demographics interaction

gamma

Optional supply coefficients

rho

Optional nesting parameters

agent_formulation

Optional demographics formulation

agent_data

Optional agent data

integration

Optional BLPIntegration

xi

Optional demand errors (drawn if NULL)

omega

Optional supply errors (drawn if NULL)

xi_variance

Variance of xi (default 1)

omega_variance

Variance of omega (default 1)

correlation

Correlation between xi and omega (default 0.9)

rc_types

Character vector of RC types

costs_type

"linear" or "log"

seed

Random seed

---

Method replace_endogenous()

Solve for equilibrium prices and shares

Usage

BLPSimulation$replace_endogenous(iteration = NULL, constant_costs = TRUE)

Arguments

iteration

BLPIteration for fixed-point iteration

constant_costs

Whether costs are independent of shares

Returns

A BLPSimulationResults object

---

Method print()

Print the simulation

Usage

BLPSimulation$print(...)

---

Method clone()

The objects of this class are cloneable with this method.

Usage

BLPSimulation$clone(deep = FALSE)

Arguments

deep

Whether to make a deep clone.