Recovering Marginal Willingness to Pays from Hedonic Prices under Imperfect Competition

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