internal factors like its size, appearance, features like solar panels or state-of-the-art faucet fixtures, and condition), as well as characteristics of its surrounding environment (i.e. The most common example of the hedonic pricing method is in the real estate market, wherein the price of a building or piece of land is determined by the characteristics of both the property itself (i.e. Hedonic pricing captures a consumer’s willingness to pay for what they perceive are environmental differences that add or detract from the intrinsic value of an asset or property.Hedonic pricing is most often seen in the housing market, since real estate prices are determined by the characteristics of the property itself as well as the neighborhood or environment within which it exists.Hedonic pricing identifies the internal and external factors and characteristics that affect an item’s price in the market.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |