Hedonic Regression

Hedonic regression is a statistical method used to determine how different features or qualities of a product or property influence its price. For example, in real estate, it assesses how factors like location, size, number of bedrooms, and amenities affect house prices. By analyzing these relationships, it helps estimate the value contributed by each characteristic, allowing for fair comparisons and informed pricing. Essentially, it breaks down complex products into individual components to understand how each one impacts overall value.