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Hedonic models are used to estimate implicit prices for water quality in housing markets. Recent studies aggregate sales across large spatial areas in scaled-up models leading to a concern that these models may overlook regional heterogeneity in water-quality preferences. We estimate scaled-up hedonic models comprised of multiple states and individual states and investigate how observations from subregions can differ. We find that the scaled-up model results are driven by select subregions. The results of this study call into question hedonic models using data for large geographic regions where substantial differences may arise across housing markets. / M.S. / Water quality in lakes impacts the prices people pay for lakefront properties. However, these effects can vary across different housing markets. We study whether owners of lakefront properties throughout the northeast and upper Midwest are willing to pay the same amount for water in lakes. We find that in multi-state housing markets, the effects from one state can dominate the overall results and there is likely heterogeneity in preferences across housing markets.

Virginia is the east coast's largest producer of eastern oysters and produces more than any other state. As the industry grows to meet increasing demand, more conflicts have arisen with other resource users, especially waterfront property owners. Some landowners claim oysters impact recreational and aesthetic uses of their property, therefore lowering the value of the home. Using a hedonic property value model, this study examines the effect of oyster aquaculture on waterfront properties by using 2,245 property sales from 16 counties and independent cities and information on aquaculture activity from 2012-2016. The results suggest that oyster aquaculture has a positive effect on waterfront property values, but a negative effect when using cage equipment. / Master of Science / Virginia is the east coast’s largest producer of eastern oysters and produces more than any other state. As the industry grows to meet increasing demand, more conflicts have arisen with other resource users, especially waterfront property owners. Some landowners claim oysters impact recreational and aesthetic uses of their property, therefore lowering the value of the home. This study examines the effect of oyster aquaculture on waterfront properties. The results suggest that oyster aquaculture has a positive effect on waterfront property values, but a negative effect when using cage equipment.

This thesis analyzes variations in office rents in Ankara. The theoretical background of this study is related to the hedonic methodology, which is extensively applied for explaining price or rental price variations of the real property. Given this theoretical framework, hedonic regression model is utilized for the estimation of hedonic price indices by using the cross sectional data of the office market in Ankara for the year 2002. Hedonic price function is specified in the log linear functional form and is estimated with the Ordinary Least Squares technique for two models. The models include the same variables / however, Model 1 differs from Model 2 in including the location variables. The estimation results obtained from the models suggest that height and construction quality of the building act as proxies for the locational characteristics. Also, it is found from Model 1 that locational characteristics have the greatest effect on the rental prices of the office units. In order to verify this fact, Model 1 is tested against Model 2 and vice versa based on alternative tests for non-nested models. The results of non-nested tests indicate that Model 1 is preferred to Model 2. This result is important in the sense that locational characteristics are found to be significant in explaining the rental price variations. Besides location variables, the other variables related to physical attributes and lease characteristics of the office property are also evaluated from the estimation results of Model 1. From the empirical results, it is finally concluded that locational characteristics explain the spatial rent variations of the office property in Ankara to a large extent.

Secondary markets have not historically possessed the characteristics necessary for market power to emerge, or effective product differentiation to be implemented. The potential effects of these characteristics on primary – secondary market interaction is generally not considered. The law of one price is expected to hold in secondary markets. By applying the hedonic technique to producer theory, and integrating the durability of the product directly into the profit maximizing conditions, potential differences in implicit prices between customer segments in the used bucket truck market are estimated. Applying weighted least squares to the hedonic equation, parameters were estimated to indicate whether differences in hedonic prices exist between customer segments in the secondary, utility construction equipment market. The hedonic approach accounted for differences in price due to physical characteristics, while underlying supply and demand conditions were accounted for using indicator variables for time. Estimated differences in the effects of physical characteristics on price, between industries, were identified using interaction terms. Results of the econometric estimation indicate that differences in physical product characteristics do not fully account for differences in price between customer segments in the secondary bucket truck market. If the law of one price can be violated in a secondary market, this could indicate market power. Future research on primary – secondary market interaction should consider the potential effects, if such market power does indeed exist.

Traditional factors known to affect feeder cattle prices, such as corn prices, have been questioned recently given the volatile nature of agricultural markets and some recent research findings. This work utilizes two very current and unique datasets to examine feeder cattle pricing relationships from Kentucky internet auctions and Certified Preconditioned for Health (CPH) sales. In addition to examining traditional pricing factors, factors that affect feeder cattle basis were also examined. Basis questions are of great interest in the southeast as transportation costs to major cattle feeding areas have been impacted by rising fuel prices and increased market volatility. Finally, price premiums were examined for cattle selling as age and source verified and natural. Results suggested that traditional factors were still found to influence feeder cattle prices, with some evidence that the magnitude of these effects may be smaller. Basis factors were found to be relevant; specifically fuel price was found to have a negative effect on basis in internet sales. This finding was also consistent with weaker basis in areas further away from the Midwest. Finally, premiums for age and source verification were moderate, roughly $11 per head for age and source verified calves, $17 per head for natural calves, and about $32 per head for cattle with both attributes.

This study examines the effects of educational submarkets -- schools and districts -- on house prices in the Tucson region. The supposition that homebuyers will pay more to live in a better school district or school attendance area is examined, with the quality of education measured by per-student expenditures and academic achievement. Traditional single-market modeling of the housing market finds that education submarkets have a small but significant effect on housing price. Further modeling, taking explicit account of the spatial nature of the housing market, suggests that in the single-market approach, education submarkets act as proxies for other neighborhood effects and variables omitted from the model. Incorporating the unique location coordinates of the properties and allowing marginal attribute- and location-effects to vary across geographic space in a trend surface approach produces more robust model results and allows the educational submarket effects to be isolated. The results suggest that school districts have a small but significant price effect even after a fluid price surface has been developed, but that intra-district variation remains. These price effects have some relationship with district quality as measured by academic achievement, but the housing market does not reward per-student expenditures. At the intra-district level, middle school quality does not appear to have a significant effect on housing price, at least in the Tucson Unified School District. However, the trend surface approach still proves to be a useful methodology for modeling small, local-scale variations. The use of polynomial expansion and spatial- attribute variable interactions is successful: problems of variable omission are diminished, spatially autocorrelated error terms are reduced and removed, effects of multicollinearity are minimized, and the effects of the educational submarkets may be examined in isolation.

The modern consumer expects a consumption experience with both hedonic and utilitarian rewards during a single visit to the mall. The orchestrating of both hedonic and utilitarian benefits in one visit challenges mall management and retailers to deliver the maximum shopping experience. This study seeks to reveal relationships among six variables: demographic characteristics, mall shopping orientation, mall perception, hedonic satisfaction, utilitarian satisfaction, and mall consumption. The intercept survey was conducted at a major entertainment-themed mall in north Texas. Multiple regression analyses (N = 202) indicate that demographic characteristics and mall shopping orientation were significant predictors of mall perception. Also, two mall perception factors (Sensation and Physical Environment) were predictors of hedonic and utilitarian mall shopping satisfaction. However, hedonic and utilitarian mall shopping satisfaction were found not to predict mall consumption in terms of cross-shopping, money spent, and time spent.

Master of Agribusiness / Department of Agricultural Economics / John Crespi / Hybrid seed corn pricing has increased significantly over the past six or seven years and continues to be a topic of conversation amongst farmers. This issue is also an area of concern for Monsanto. The hybrid corn pricing team at Monsanto is concerned that they price current products at a point to maximize profits while continuing to grow market share. The key is to price at a point that captures all the value of the differentiated products Monsanto offers. The objective for this study is to estimate a demand model for the hybrid seed corn industry. The demand model will allow us to look at many different aspects of the hybrid seed corn industry and also evaluate the own-price and cross-price elasticities. The own-price elasticity is especially important because it will be used to determine if current pricing is revenue or profit-maximizing. A hedonic pricing model was also estimated in this study to complement the demand model. It is important for Monsanto to understand what attributes or traits are significant in pricing and demand.

Esta pesquisa tem como objetivo compreender a relação entre as características intrínsecas e extrínsecas dos calçados sociais masculinos e o seu preço de varejo no município de São Paulo. Para isso, o trabalho utiliza a teoria dos atributos proposta por Lancaster (1966) e o método de preços hedônicos de Rosen (1974). Para a precificação dos atributos intrínsecos e extrínsecos dos calçados sociais masculinos foi desenvolvido um modelo de regressão múltipla com variáveis dummy para identificação e precificação dos atributos mais importantes na composição dos preços oferecidos ao consumidor final. O banco de dados da pesquisa foi composto por 1.120 observações, levantadas no período entre 20 de junho e 21 de novembro de 2015, envolvendo 21 lojas e redes de lojas, todas localizadas no município de São Paulo. Dentre as diversas formas funcionais utilizadas (linear, semilogarítimica e dupla logarítmica), escolheu-se a forma linear (LIN-LIN) que forneceu um poder de explicação para o modelo (R2) de 80%. Os resultados encontrados indicam que a principal variável presente foi o acabamento do couro em cromo alemão, cujo preço implícito, quando esse tipo de couro é utilizado na fabricação do calçado, impacta o preço de varejo em R$ 593,92. Outros itens que também são bastante significativos para a formação do preço final de varejo dos calçados sociais masculinos, quando presentes, pertencem a cinco variáveis. A primeira classifica os distritos municipais de São Paulo em populares ou nobres, e reduz o preço em R$ 75,05, quando o distrito é popular. A segunda refere-se ao tipo de solado; no caso de borracha, também diminui o preço final em R$ 77,83. As regiões Sul, Norte e Central impactam negativamente o preço final do calçado em R$ 63,40, R$ 44,77 e R$ 18,09, respectivamente. Também foi encontrado que o preço básico dos calçados sociais masculinos situa-se em R$ 318,56 (valor da constante). A pesquisa corroborou a aplicabilidade do método dos preços hedônicos para precificar os atributos existentes em calçados sociais masculinos / This research seeks to understand the link between intrinsic and extrinsic characteristics of men´s formal shoes and its retail price in São Paulo. To achieve this goal, it applies the theory of attributes proposed by Lancaster (1966) and the hedonic method proposed by Rosen (1974). For the evaluation of prices for the intrinsic and extrinsic attributes of men´s formal shoes, it was developed a multiple regression model, with dummy variables linked to the most important attributes of these shoes . The research database consists of 1,120 observations gathered between June 20 and November 21, 2015, which involved 21 stores and chain stores, all located in São Paulo. Among the various functional forms generally used for regressions (linear, semi logarithmic and double logarithmic), the linear (LIN-LIN) was chosen, because it provided an explanatory power of 80% to the model (R2). The results also indicate that the main variable found was the use of German chrome at the leather finishing, whose implicit price (when this type of leather finishing is used in the manufacture of male footwear) impacts the retail price in the amount of R$ 593,92. Other factors that are also quite significant for the formation of the final retail price of men´s formal shoes, when present, are the five following variables. The first one divides the municipal districts of São Paulo in popular or affluent, and leads to a price reduction of R$ 75.05 when the district is popular. The second type refers to the outsole; if rubber is used it also decreases the final cost in R$ 77,83. São Paulo´s South ,North and Central regions negatively impact the final price of footwear in R$ 63,40, R$ 44,77 and R$ 18,09, respectively. Yet, it was concluded that the base price for men´s formal footwear is R$ 318,56 (constant value of the regression line). Finally, the survey corroborates the applicability of the method of hedonic pricing to attributes in men´s formal shoes.