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Environmental Amenities as Sources for Product Differentiation and Market Power

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  • Osborne, Laura L.
  • Smith, V. Kerry

Abstract

This paper evaluates the importance of site-specific environmental amenities as a source of product differentiating market power. Using estimates from hedonic price equations and residual demand models, the analysis recovers firm-specific estimates of price markup and estimates of the marginal willingness to pay for access to coastal beaches. The application used in the analysis involves rental price and occupancy data for several thousand beach properties along a portion of the North Carolina coastline during the 1987 to 1992 rental seasons.

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Bibliographic Info

Paper provided by Duke University, Department of Economics in its series Working Papers with number 96-08.

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Date of creation: 1996
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Handle: RePEc:duk:dukeec:96-08

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Postal: Department of Economics Duke University 213 Social Sciences Building Box 90097 Durham, NC 27708-0097
Phone: (919) 660-1800
Fax: (919) 684-8974
Web page: http://econ.duke.edu/

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Cited by:
  1. Wesley Nimon & John Beghin, 1999. "Are Eco-Labels Valuable? Evidence From the Apparel Industry," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 81(4), pages 801-811.

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