Valuing product attributes using single market data: a comparison of hedonic and discrete choice approaches
Article Abstract:
Product attributes preferred by consumers are estimated via the comparison of simulated performances of hedonic and multinomial logit models. Equilibrium prices are discovered by having consumers bid for a set of houses after giving preferences to the houses' attributes. The hedonic model is outperformed by the logit model in valuing non-marginal changes in attributes, particularly when the true form of the utility functions of consumers is known by the researcher. Marginal attribute bids can be adequately estimated via the gradient of the hedonic price function of a linear Box-Cox.
Publication Name: Review of Economics and Statistics
Subject: Mathematics
ISSN: 0034-6535
Year: 1993
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Search, hedonic prices and housing demand
Article Abstract:
Housing demand and hedonic prices are estimated using data from the 1980 Sacramento, CA, Annual Housing Survey. In order to best describe the search process, the model regresses rental housing against reservation price given an optimal stopping rule. Using truncated and stochastic regression analysis, the results suggest that joint estimation of hedonic price and reservation rent is not only possible, but also more reliable than standard single equation demand models.
Publication Name: Review of Economics and Statistics
Subject: Mathematics
ISSN: 0034-6535
Year: 1992
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Improving hedonic estimation with an inequality restricted estimator
Article Abstract:
The Monte Carlo method was used to evaluate an economic indicator's efficiency given correct prior data on a model describing inequality limits. Cross-validation and estimates were also obtained for a case involving various levels of prior data. The inequality restricted Bayesian estimator exhibited superior performance over ordinary least squares in parameter estimation, out-of-sample prediction and estimation risk measures.
Publication Name: Review of Economics and Statistics
Subject: Mathematics
ISSN: 0034-6535
Year: 1995
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