what hadonic pricing method?
1 answer
The correct term is "hedonic pricing method." The hedonic pricing method is an approach used in economics to estimate the implicit value of a specific characteristic or attribute of a product or service. It assumes that the price of a product is a result of the various attributes it possesses, and these attributes contribute to the overall utility or satisfaction derived by the customers. By analyzing the prices of different products with varying attributes, economists can estimate the individual value of each attribute. This method is commonly used in real estate to determine the value of specific property characteristics, such as the number of bedrooms, location, or square footage. It is also used in other industries to estimate the value of different product features.