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Recovering Marginal Willingness to Pays from Hedonic Prices under Imperfect Competition

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  • Huang, Ju-Chin

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.

Suggested Citation

  • Huang, Ju-Chin, 2016. "Recovering Marginal Willingness to Pays from Hedonic Prices under Imperfect Competition," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 235608, Agricultural and Applied Economics Association.
    • Handle: RePEc:ags:aaea16:235608
    DOI: 10.22004/ag.econ.235608
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    References listed on IDEAS

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    Keywords

    Consumer/Household Economics; Demand and Price Analysis; Environmental Economics and Policy;
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