Measuring The Value Of Product Characteristics In The Presence of Price Dispersion

Research output: Contribution to journalArticlepeer-review

38 Downloads (Pure)

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.
Original languageEnglish
Pages (from-to)535-544
Number of pages10
JournalManagerial And Decision Economics
Volume36
Issue number8
Early online date30 Sept 2014
DOIs
Publication statusPublished - 4 Nov 2015

Fingerprint

Dive into the research topics of 'Measuring The Value Of Product Characteristics In The Presence of Price Dispersion'. Together they form a unique fingerprint.

Cite this