Hedonic Prices for a Nondurable Good: The Case of Breakfast Cereals
journal contributionposted on 15.11.2021, 21:29 by L. R. Stanley, John T. Tschirhart
Numerous studies have estimated hedonic price functions for durable goods. In this paper we apply the methodology to breakfast cereals, a nondurable good. We employ maximum likelihood to estimate the hedonic price functions using data from three large supermarkets. The price function depends on characteristics that provide tastes, nutrition and convenience to consumers, and the estimates yield insights into pricing policies, consumer preferences and consumer use of information.
PublisherUniversity of Wyoming. Libraries
Journal titleReview of Economics and Statistics
CollectionFaculty Publications - Economics
- Library Sciences - LIBS