HEDONIC PRICE FOR CAR IN IRAN

Abstract

Car industry constitutes a major part of economic activities and is deeply linked to other economical sectors. This industry is a mirror reflecting the general situation of each country's industries. Car manufacturing industry is forced to renovate due to parametes effective on its products demand. Sedan car comprises a specific share of the family consumption expenditure among durable goods. The payments that the consumer bears for acquiring a sedan car which meets its needs depend on a set of parameters that identifies the car by such features. The Hedonic method is a method that considers the goods price a function of all its specifications and features and by this method you may study the priorities and interests of applicants.The implicit prices that are achieved in Hedonic method is an estimate of family's final desire to pay for car specifications which in fact the priorities of the family to choose the car will be determined by determination of the final desire to pay the price. In this research a full logarithmic model for estimation of Hedonic price model has been used in 3 section levels of 2006, 2008, 2010. The statistical population consists of 30 car models manufactured and assembled by sedan car manufacturing factories in Iran. Among the features presented for the car, 5 features group have a meaningful effect on the sedan car price among which we can point to the size of car which has the highest effect on car price and the consumer has the highest tendency for paying for this feature,