Abstract
A hedonic function is a relation between prices of varieties or models of heterogeneous goods – or services – and the quantities of characteristics contained in them:
where P is an n-element vector of prices of varieties, and (c) is a k × n matrix of characteristics. The theory providing its economic interpretation rests on the hedonic hypothesis – heterogeneous goods are aggregations of characteristics, and economic behaviour relates to the characteristics.
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Triplett, J.E. (2018). Hedonic Functions and Hedonic Indexes. In: The New Palgrave Dictionary of Economics. Palgrave Macmillan, London. https://doi.org/10.1057/978-1-349-95189-5_863
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DOI: https://doi.org/10.1057/978-1-349-95189-5_863
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