Hedonic prices and implicit markets: product differentiation in pure competition

S Rosen - Journal of political economy, 1974 - journals.uchicago.edu
A class of differentiated products is completely described by a vector of objectively
measured characteristics. Observed product prices and the specific amounts of
characteristics associated with each good define a set of implicit or" hedonic" prices. A
theory of hedonic prices is formulated as a problem in the economics of spatial equilibrium
in which the entire set of implicit prices guides both consumer and producer locational ...