% MATLAB HEAD clc, clear, randn('seed', 5678) % reset normal random number generator global N N = 1000; % # of Observations a=40; b=2; %%%%%%%%%%%%%%%%%%%%% % SIMULATE DATA %%%%%%%%%%%%%%%%%%%%% Q =a+b*randn(N,1); % Quantity %%%%%%%%%%%%%%%%%%%%%%%%%% % COMPUTING FOR ANALYSIS % %%%%%%%%%%%%%%%%%%%%%%%%%% %Let's create a couple of dummies ud1 = randn(N,1); % Brand 1 and 2 BRAND= 1+(ud1>0.15); % Eleven Weeks! % R = unidrnd(T) generates random numbers for the discrete uniform distribution with maximum T. T=11; WEEK= unidrnd( T*ones(N,1)); % Construct the Market Shares of X1 mean([ WEEK, BRAND]); hist(WEEK) hist(BRAND) %%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%% % Compute a Matrix to Show how many observations you have per brand and per % week with total column and row, i.e., (T+1 times 3) matrix %%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%% data1=zeros(T+1,3); for n=1:N for j=1:2 for t=1:T; if BRAND(n,1)==j && WEEK(n,1)==t data1(t,j)=data1(t,j)+1; end end end end data1(1:T,3)= data1(1:T,1)+data1(1:T,2); data1(T+1,:)= sum(data1(1:T,:)); %%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%% data2=zeros(T+1,3); for j=1:2 for i=1:T; index= (((WEEK==i).*(BRAND==j)) ==1); data2(i,j)= sum(index); clear index end end data2(:,3)= sum( data2(:,1:2),2); data2(T+1,:)= sum( data2(1:T,:) ,1); %%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%% % From Quantities to Market Shares %%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%% Q_T=sum(Q); %%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%% % Market Shares per Brand %%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%% Q_B1=sum(Q.*(BRAND==1)); Q_B2=sum(Q.*(BRAND==2)); MKS_1= Q_B1/Q_T; MKS_2= Q_B2/Q_T; %%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%% % Market Shares per Week %%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%% Q_B1=sum(Q.*(BRAND==1)); Q_B2=sum(Q.*(BRAND==2)); MKS_1_weekly=zeros(T,1); MKS_2_weekly=zeros(T,1); for t=1:T i1=(WEEK==t).*(BRAND==1); i2=(WEEK==t).*(BRAND==2); MKS_1_weekly(t,1)= sum(Q((i1==1)))./sum(Q((WEEK==t))); MKS_2_weekly(t,1)= sum(Q((i2==1)))./sum(Q((WEEK==t))); end plot(MKS_1_weekly, '-diamond'); hold on; plot(MKS_2_weekly ,'--o'); hold on; h = legend('Market Share Brand 1','Market Share Brand 2',2); set(gca,'XTick',1:5:T); set(gca,'XTickLabel',{'Week1','Mid Week','Final Week'}) ylabel('[%]'); xlabel('Weeks from 1 to T'); title('Weekly Market Share by Brands.','FontSize',12); hold off filename = 'MKS_Weekly'; print('-deps', filename); %%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%% % WEIGHTED PRICES %%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%% % Suppose Liner Demand P=100-Q; hist(P) %%% CONSTRUCT WEEKLY PRICE INDEX USING WEEKLY MARKET SHARES AS WEIGHTS P_Weekly = zeros(T,1); for t=1:T i =(WEEK==t); weight=Q(i)/sum(Q(i)); Pwei = P(i).*weight; P_Weekly(t,1)= sum( Pwei); clear weight end % CONSTRUCT WEEKLY PRICE INDEX PER BRAND % USING WEEKLY MARKET SHARES AS WEIGHTS P_Weekly_byBrand = zeros(T,2); for j=1:2 for t=1:T k =( (WEEK==t).*(BRAND==j) )==1; weight=Q(k)/sum(Q(k)); Pwei_bybrand = P(k).*weight; P_Weekly_byBrand(t,j)= sum( Pwei_bybrand); clear weight k Pwei_bybrand end end plot(P_Weekly ,'-square'); hold on; plot(P_Weekly_byBrand(:,1),'--diamond'); hold on; plot(P_Weekly_byBrand(:,2) ,'--o'); hold on; h = legend('Weekly weighted Price','Weekly weighted Price for Brand 1','Weekly weighted Price for Brand 2' ,4); set(gca,'XTick',1:5:T); set(gca,'XTickLabel',{'Week1','Mid Week','Final Week'}) ylabel('Price [$]'); xlabel('Weeks from 1 to T'); title('Weekly Weighted Price per Week and Brand','FontSize',12); hold off filename = 'Weighted_Price_Weekly'; print('-deps', filename);