PT  - JOURNAL ARTICLE
AU  - Huang, Ju-Chin
AU  - Zhao, Min Qiang
TI  - A Hedonic Price Model to Recover Marginal Willingness to Pay for Product Attributes in the Presence of Market Power
AID  - 10.3368/le.101.3.051124-0042R
DP  - 2025 Mar 07
TA  - Land Economics
PG  - 051124-0042R
4099  - http://le.uwpress.org/content/early/2025/02/28/le.101.3.051124-0042R.short
4100  - http://le.uwpress.org/content/early/2025/02/28/le.101.3.051124-0042R.full
AB  - This study employs 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 both price-cost markups and marginal values of product attributes under the popular semi-log specification, improving both the applicability and reliability of empirical hedonic valuation studies. Applying this new empirical strategy to analyze US lift ticket prices, our results reveal an estimated price-cost ratio between 1 and 2, with pass-sharing arrangements further amplifying this markup. Ignoring market power can bias the hedonic valuation of product attributes.