Product differentiation and hedonic prices: an empirical analysis

Author

Wen, Haizhen ; Lu, Jiefeng ; Fu, Yi

Author_Institution

Dept. of Civil Eng., Zhejiang Univ., Hangzhou, China

Volume

2

fYear

2005

fDate

13-15 June 2005

Firstpage

1259

Abstract

The hedonic price model is widely applied to study the urban housing market because of the heterogeneity of housing products. Literature indicated that the hedonic price theory mainly includes two parts: Lancaster´s partiality theory and Rosen´s characteristic market equilibrium analysis. This paper chose 18 characteristics as independent variables and set up a linear hedonic price model for Hangzhou city. The model was tested with 2473 housing samples and field survey data of 290 housing communities. This research found that 14 out of 18 characteristics had significant influence on housing price. They were classified into 5 groups according to their impact degree.

Keywords

marketing; pricing; town and country planning; Hangzhou city; Lancaster partiality theory; Rosen characteristic market equilibrium analysis; hedonic price theory; housing price; linear hedonic price model; product differentiation; Agricultural machinery; Automobiles; Cities and towns; Civil engineering; Educational institutions; Environmental economics; Industrial economics; Stock markets; Supply and demand; Testing;

fLanguage

English

Publisher

ieee

Conference_Titel

Services Systems and Services Management, 2005. Proceedings of ICSSSM '05. 2005 International Conference on

Print_ISBN

0-7803-8971-9

Type

conf

DOI

10.1109/ICSSSM.2005.1500199

Filename

1500199