Working Paper: NBER ID: w10427
Authors: Alan G. White; Jaison R. Abel; Ernst R. Berndt; Cory W. Monroe
Abstract: Results of hedonic price regressions for personal computer operating systems and productivity suites advertised in PC World magazine by retail vendors during the time period 1984 to 2000 are reported. Among the quality attribute variables we use are new measures capturing the presence of network effects in personal computer operating systems, such as connectivity and compatibility, and product integration among components of productivity suites. Average annual growth rates of quality-adjusted prices of personal computer operating systems range from -15 to -18 percent, while those for productivity suites generally range between -13 and -16 percent. Price declines are generally greater in the latter half of the samples.
Keywords: Hedonic price indexes; Personal computer operating systems; Productivity suites; Network effects; Quality-adjusted prices
JEL Codes: D4; E3; L86
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Quality attributes (L15) | Quality-adjusted price changes (C43) |
| Network effects (D85) | Quality-adjusted price changes (C43) |
| Product integration (L14) | Quality-adjusted price changes (C43) |
| Connectivity and compatibility (L15) | Perceived value (D46) |
| Quality-adjusted prices (C43) | Price changes (P22) |
| Hedonic regression analyses (C29) | Quality-adjusted price changes (C43) |