Recovering Marginal Willingness to Pays from Hedonic Prices under Imperfect Competition

Ju-Chin Huang

No 235608, 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts from Agricultural and Applied Economics Association

Abstract: In this paper, hedonic price analysis under imperfect competition is studied. We demonstrate a means to simultaneously recover the price-cost markup and the marginal values of product attributes from hedonic price estimation under imperfect competition. Our theoretical results provide guidance to the empirical specification of the hedonic price model, increasing both the applicability and reliability of hedonic valuation methods. We conduct a Monte Carlo simulation to evaluate various specifications of hedonic price models under imperfect competition. An application to estimating marginal willingness to pays for characteristics of a ski resort is presented.

Keywords: Consumer/Household Economics; Demand and Price Analysis; Environmental Economics and Policy (search for similar items in EconPapers)
Pages: 29
Date: 2016
New Economics Papers: this item is included in nep-com and nep-ecm
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Persistent link: https://EconPapers.repec.org/RePEc:ags:aaea16:235608

DOI: 10.22004/ag.econ.235608

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