University of Hertfordshire

From the same journal

By the same authors

Documents

View graph of relations
Original languageEnglish
Number of pages10
Pages (from-to)535-544
JournalManagerial And Decision Economics
Journal publication date4 Nov 2015
Volume36
Issue8
Early online date30 Sep 2014
DOIs
Publication statusPublished - 4 Nov 2015

Abstract

Modeling the price of multi-attribute products generally requires an assessment of eachattributes’ market value. In the presence of price dispersion, when similar products are soldat different prices, hedonic pricing models provide users with biased estimates of attributevalue. This paper develops the hedonic pricing literature by proposing data envelopmentanalysis as a prior means of identifying a sub-sample of products which, after adjustingfor attribute provision, display no price dispersion. These products then display a homoge-nous link between attributes and price, which can be modeled using hedonic pricing. Thispaper implements and evaluates this two-stage approach using 1000 observations fromthe UK mortgage market.

Notes

This is the peer reviewed version of the following article: Damian Ward, 'Measuring the Value of Product Characteristics in the Presence of Price Dispersion', Managerial and Decision Economics, Vol. 36 (8): 535-544, December 2015, which has been published in final form at https://doi.org/10.1002/mde.2693. This article may be used for non-commercial purposes in accordance with Wiley Terms and Conditions for Self-Archiving.

ID: 10679686