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A hedonic price analysis of hearing aid technology


  • Dakshina G. De Silva
  • Nidhi Thakur
  • Mengzhi Xie


In this article, we study how technological components affect the price of hearing aids. The main goals are to determine which functional and technological features have the greatest influence on manufacturer-based prices in the hearing aid industry, and to analyse the price-cost margins at the dispenser level using a unique data set that is compiled from a hearing clinic in West Texas. The result shows that style and signal processing scheme are the two most important determinants of hearing aid price. Other characteristics such as directional microphone, noise cancellation, and a certain shell type are also positively related to price. Further, on average, this particular local dispenser has a markup of about 35% per hearing instrument.

Suggested Citation

  • Dakshina G. De Silva & Nidhi Thakur & Mengzhi Xie, 2013. "A hedonic price analysis of hearing aid technology," Applied Economics, Taylor & Francis Journals, vol. 45(16), pages 2315-2323, June.
  • Handle: RePEc:taf:applec:45:y:2013:i:16:p:2315-2323
    DOI: 10.1080/00036846.2012.663473

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