EconPapers    
Economics at your fingertips  
 

A Hedonic Price Model to Recover Marginal Willingness to Pay for Product Attributes in the Presence of Market Power

Ju-Chin Huang and Min Qiang Zhao

Land Economics, 2025, vol. 101, issue 3, 423-440

Abstract: This study uses a hedonic price framework to estimate consumers’ marginal willingness to pay for product attributes in imperfectly competitive markets. Our approach allows for the joint estimation of price-cost markups and marginal values of product attributes under the popular semi-log specification, improving the applicability and reliability of empirical hedonic valuation studies. Applying this new empirical strategy to analyze U.S. lift ticket prices, our results reveal an estimated price-cost ratio between one and two, with pass-sharing arrangements further amplifying this markup. Ignoring market power can bias the hedonic valuation of product attributes.

JEL-codes: Q51 (search for similar items in EconPapers)
Date: 2025
Note: DOI: https://doi.org/10.3368/le.101.3.051124-0042R
References: Add references at CitEc
Citations:

Downloads: (external link)
http://le.uwpress.org/cgi/reprint/101/3/423
A subscription is required to access pdf files. Pay per article is available.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:uwp:landec:v:101:y:2025:i:3:p:423-440

Access Statistics for this article

More articles in Land Economics from University of Wisconsin Press
Bibliographic data for series maintained by ().

 
Page updated 2025-07-30
Handle: RePEc:uwp:landec:v:101:y:2025:i:3:p:423-440