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In economics, hedonic regression or hedonic demand theory is a revealed preference method of estimating demand or value. It decomposes the item being researched into its constituent characteristics, and obtains estimates of the contributory value of each characteristic. This requires that the composite good being valued can be reduced to its constituent parts and that the market values those constituent parts. Hedonic models are most commonly estimated using regression analysis, although more generalized models, such as sales adjustment grids, are special cases of hedonic models. An attribute vector, which may be a dummy or panel variable, is assigned to each characteristic or group of characteristics. Hedonic models can accommodate non-linearity, variable interaction, or other complex valuation situations. Hedonic models are commonly used in real estate appraisal, real estate economics, and Consumer Price Index (CPI) calculations. In CPI calculations hedonic regression is used to control the effect of changes in product quality. Price changes that are due to substitution effects are subject to hedonic quality adjustments. ==Hedonic pricing method== Although product characteristics are neither produced nor consumed in isolation, hedonic price models assume that the price of a product reflects embodied characteristics valued by some implicit or shadow prices. In empirical studies, these implicit characteristic prices are coefficients that relate prices and attributes in a regression model. Hedonic price regression models are estimated using secondary data on prices and attributes of different product or service alternatives. In working with longitudinal data, one adds period-specific dummies and uses their regression coefficients to estimate quality-adjusted price indices. In hedonic regression, independent variables typically include performance-related product and service attributes. Such product characteristics represent not only value to the user but also resource cost to the producer. It has been demonstrated however that prices in hedonic regression are not determined completely by technical factors and performance-related characteristics. Brand-name and market-segment effects can explain price distortions and premiums that are charged over and above any allowance made for differences in measurable product performance.〔Baltas, G. and Freeman, J. (2001). Hedonic Price Methods and the Structure of High-Technology Industrial Markets: An Empirical Analysis. ''Industrial Marketing Management'' 30: 599-607〕 Certain environmental services often influence the market prices. The Hedonic pricing method is often brought into play in order to assess the economic values of such services. This method finds its application to reveal the effect of environmental attributes in changes in the local real estate pricing. It is frequently used for estimating costs related to: * The overall quality of the environment in terms of air pollution, water pollution, and noise * Environmental amenities which include aesthetic sights and closeness to recreational sites such as parks, beaches, etc. It is important to note that the hedonic pricing method is based on the fact that prices of goods in a market are affected by their characteristics. For example, the price of a pair of pants will depend on the comfort, the cloth used, the brand, the fit, etc. So this method helps us estimate the value of a commodity based on people’s willingness to pay for the commodity as and when its characteristics change. 〔(Ecosystem Valuation Methods - Hedonic Pricing )〕 A particular example which is used most often is the real estate market where the value of two different properties (which can otherwise be compared) will vary depending on the various environmental amenities present in the surrounding areas of these properties. If there is a measurable price drop of properties located near a dump yard (as compared to other locations), the difference in the prices point towards the external cost of the dump yard. 〔(Hedonic pricing (HPM) ). VU University, Institute for Environmental Studies.〕 It is the marginal willingness to pay (in higher housing prices) for the given difference in cleanliness and serenity of the locality. Hedonic Regression methods are used to estimate these price differentials. The Hedonic Pricing Method (HPM) as mentioned earlier is a form of revealed preference method of valuation and it uses surrogate markets to estimate the value of the environmental amenity. Surrogate market is a concept that one uses when one cannot directly estimate the market prices for certain environmental goods. Therefore, a similar good sold in the market is chosen as a proxy. For example, if we want to know the value of clean air estimated by an individual, he may reveal his preference in the form of establishing his house in a clean society and paying an extra premium for the same. Thus, with the help of Hedonic Pricing Method, the environmental component of the value and the market price can be separated. In turn, this market price is used a surrogate for the environmental value. 〔 〕 抄文引用元・出典: フリー百科事典『 ウィキペディア（Wikipedia）』 ■ウィキペディアで「Hedonic regression」の詳細全文を読む スポンサード リンク
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