Hedonic methods for baskets of goods

C-Tier
Journal: Economics Letters
Year: 2013
Volume: 120
Issue: 2
Pages: 284-287

Score contribution per author:

0.503 = (α=2.01 / 2 authors) × 0.5x C-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Existing hedonic methods cannot be easily adapted to estimate willingness to pay for product characteristics when willingness to pay depends on a very large basket of goods. We show how to marry these methods with revealed preference arguments to estimate bounds on willingness to pay using data on purchases of seemingly impossibly high dimensional baskets of goods. This allows us to use observed purchase prices and quantities on a large basket of products to learn about individual household’s willingness to pay for characteristics, while maintaining a high degree of flexibility and also avoiding the biases that arise from inappropriate aggregation.

Technical Details

RePEc Handle
repec:eee:ecolet:v:120:y:2013:i:2:p:284-287
Journal Field
General
Author Count
2
Added to Database
2026-01-25