Summary

A hedonic regression regresses the price of various models of a product (or service) on the characteristics that describe the product. The existing economic theory that justifies a hedonic regression is extremely complex. The present paper takes a very simple consumer theory approach in order to justify a family of functional forms for a hedonic regression. The main simplifying assumption is that every consumer has the same hedonic utility function, which describes how consumers evaluate alternative models with different characteristics. This hedoni