Entropy Methods for Identifying Hedonic Models
Copyright policy )Entropy Methods for Identifying Hedonic Models
This paper contributes to the literature on hedonic models in two ways. First, it makes use of Queyranne's reformulation of a hedonic model in the discrete case as a network flow problem in order to provide a proof of existence and integrality of a hedonic equilibrium and efficient computation of hedonic prices. Second, elaborating on entropic methods developed in Galichon and Salanié (2014), this paper proposes a new identification strategy for hedonic models in a single market. This methodology allows one to introduce heterogeneities in both consumers' and producers' attributes and to recover producers' profits and consumers' utilities based on the observation of production and consumption patterns and the set of hedonic prices.
18 pages
Matching models, generalized entropy, hedonic equilibrium, Econometrics (econ.EM), Hedonic Equilibrium; Generalized Entropy; Single Market Identification, FOS: Economics and business, Single Market Identification, Microéconomie, Hedonic models; Entropic methods; Identification, Microeconomics, D12, [SHS.ECO] Humanities and Social Sciences/Economics and Finance, Sciences économiques & de gestion, Economics - Econometrics, Business & economic sciences, hedonic models, ddc:330, identification, entropic methods, hedonic models, Hedonic Equilibrium, L11, hedonic models, entropic methods, identification, Microeconomic theory (price theory and economic markets), single market identification, Generalized Entropy, J3, identification, entropic methods, jel: jel:C62, jel: jel:C31, jel: jel:D12, jel: jel:J30, jel: jel:L11, jel: jel:J3
Matching models, generalized entropy, hedonic equilibrium, Econometrics (econ.EM), Hedonic Equilibrium; Generalized Entropy; Single Market Identification, FOS: Economics and business, Single Market Identification, Microéconomie, Hedonic models; Entropic methods; Identification, Microeconomics, D12, [SHS.ECO] Humanities and Social Sciences/Economics and Finance, Sciences économiques & de gestion, Economics - Econometrics, Business & economic sciences, hedonic models, ddc:330, identification, entropic methods, hedonic models, Hedonic Equilibrium, L11, hedonic models, entropic methods, identification, Microeconomic theory (price theory and economic markets), single market identification, Generalized Entropy, J3, identification, entropic methods, jel: jel:C62, jel: jel:C31, jel: jel:D12, jel: jel:J30, jel: jel:L11, jel: jel:J3
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