Environmental Amenities as Sources for Product Differentiation and Market Power

35 Pages Posted: 26 Nov 1997

See all articles by Laura L. Osborne

Laura L. Osborne

affiliation not provided to SSRN

V. Kerry Smith

Arizona State University (ASU) - Economics Department; National Bureau of Economic Research (NBER)

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.

JEL Classification: L10, Q26, L83

Suggested Citation

Osborne, Laura L. and Smith, V. Kerry, Environmental Amenities as Sources for Product Differentiation and Market Power. Available at SSRN: https://ssrn.com/abstract=31970 or http://dx.doi.org/10.2139/ssrn.31970

Laura L. Osborne

affiliation not provided to SSRN

V. Kerry Smith (Contact Author)

Arizona State University (ASU) - Economics Department ( email )

Tempe, AZ 85287-3806
United States

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

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