Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Valuation Tools - Hedonic Pricing Method
This method is used for valuation of non-marketed goods and services. In this method we decompose the price of a commodity into the prices of its components or attributes. For greater clarity we explain this method with an example of housing prices. It is observed that the price of a house in an urban setting is ascribed to availability of various amenities such as open space, lower noise and congestion, and proximity to parks apart from the structure and size of the house. A house with better environmental amenities (other aspects such as proximity to public school, availability of public transport, police protection, decent neighbor hood, etc. remaining similar) usually fetches a higher price than one located in a polluted environ. Thus the difference in the price of the two houses can be considered as the willingness to pay for better quality environment.
This method needs to be used with caution as it is difficult to keep certain variables unchanged (in the above example, size of house and similarity of non-environmental factors) while changing environmental attributes. Secondly, much subjectivity is involved in the decomposition of the attributes, measurement of these attributes, and precise valuation these attributes. Thirdly, data requirement is enormous in the case of hedonic pricing method which hinders its applications.
Normal 0 false false false EN-IN X-NONE X-NONE MicrosoftInternetExplorer4
describe and illustrate the lm-schedule
explain how under the WTO differential treatment in reverse is different from the special and differential treatment
multi unit finance
Write a short note on product mix efficiency?
Q. Describe ex-ante heterogeneity? First conflict reflects heterogeneity among agents due to different policy preferences. Individuals or agents are heterogeneous in a number o
Our economic systems are of this type and share for general properties. a) Dissipative systems transform energy and process information to maintain a state of organization that
How has public policy helped to shape the way that urban Americans have spent their leisure time throughout the period that we have examined in class? Have such policies hindered a
what is an effect of nationalization on a business?
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd