The New Palgrave Dictionary of Economics

2018 Edition
| Editors: Macmillan Publishers Ltd

Hedonic Functions and Hedonic Indexes

  • Jack E. Triplett
Reference work entry


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:
$$ P=h(c) $$
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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© Macmillan Publishers Ltd. 2018

Authors and Affiliations

  • Jack E. Triplett
    • 1
  1. 1.