Table 4.3. Implied Prices and Market Prices of Vacation Cottages With Shore Frontage 

 Based on Maximized Gross Benefits, Ashuelot River Basin 



B identifies cottage with boat. 



Cottage price (Cj) or shadow price plus dual variable on Cottage (Min.) 

 ■^ Minimum price required before the number of vacation cottages B Cottage 1 and Cottage 2 

 would increase above minimum found in the area. For other vacation cottages to increase 

 above the minimum in the area, the prices must be raised to the equivalent of the lower 

 price at which the cottage would enter the basis plus the value of the dual variable on 

 Cottage (minimum requirement). 



Maximized gross benefits = PRITOT 



requirement were removed. To develop a price at which shore cottages would 

 appear in the results at levels above the required amount, the shadow or implied 

 price was added to the model price. For a cottage on a small lot and with a 

 40-horsepower boat equivalent (B cottage 1)/ this was the model price of 



The "B" preceding the word "cottage" indicates a vacation cottage with boat powered 

 by a 40-horsepower outboard motor. Other cottages are assumed not to have this equivalent 

 in boat equipment. 



29 



