Entropy methods for identifying hedonic models

Arnaud Dupuy, Alfred Galichon, Marc Henry

    Research output: Working paper

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    Abstract

    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 computational techniques of hedonic prices. Second, elaborating on entropic methods developped 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.
    Original languageEnglish
    PublisherCEPS/INSTEAD
    Number of pages24
    Publication statusPublished - 2014

    Publication series

    NameWorking Papers
    PublisherCEPS/INSTEAD
    No.2014-07

    Keywords

    • Entropic methods
    • Hedonic models
    • Identification

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