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This is my Antitrust Economics homework question. I do not understand the logit demand concept. 5. Assume that you have the pre-merger data shown above
This is my Antitrust Economics homework question.
I do not understand the logit demand concept.
5. Assume that you have the pre-merger data shown above on quantities, calculated in question I. But, suppose that you did not know that these data were generated by linear demand curve. You decide to assume that these numbers were generated by logit demands. On that assumption, how do the UPPI calculations change? Would getting the demand cuwes wrong affect your conclusions about the likely outcome of the merger?
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