Price Check on Aisle 2

Price Check on Aisle 2 - 1 Price Check on Aisle 2 Ashley...

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1 Price Check on Aisle 2 Ashley Oren Parkman Grantham University
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2 ABSTRACT This paper is written to explain what the Hedonic Method is and exactly why it is sometimes used to track changes in the Consumer Price Index.
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3 Price Check on Aisle 2 The Hedonic Pricing Method is price factors according to the premise that price determined both by internal characteristics of the good being sold and external factors affecting it (Hedonic Pricing, 2012). An example of a good that is directly affected in many compilations of the Hedonic Method is houses. The housing market has been increasing and decreasing and even hitting rock bottom since 2007. This is in essence a great way to explain the Hedonic Pricing Method, because if a person buys a house, it is not just the house that is being bought, but the land, the porch, the tree in the yard, and even the beloved family pet that is buried under the large oak tree in the back yard. All of these different pieces of the puzzle have a specific value in the Hedonic Pricing Method. When buying a house and relating it to the Hedonic Pricing Method, the characteristics of the house and the property it is on is what matters the most. The outside factors that are taken into consideration are the neighborhood the house is part of,
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This note was uploaded on 03/05/2012 for the course MACRO 101 taught by Professor Ducharme during the Spring '12 term at Grantham.

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Price Check on Aisle 2 - 1 Price Check on Aisle 2 Ashley...

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