Premium
HEDONICS AND DEMAND ANALYSIS: THE IMPLICIT DEMAND FOR PLAYER ATTRIBUTES
Author(s) -
STEWART KENNETH G.,
JONES J.C.H.
Publication year - 1998
Publication title -
economic inquiry
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.823
H-Index - 72
eISSN - 1465-7295
pISSN - 0095-2583
DOI - 10.1111/j.1465-7295.1998.tb01706.x
Subject(s) - economics , microeconomics , league , econometrics , econometric analysis , on demand , derived demand , demand curve , commerce , physics , astronomy
Although a significant econometric literature is concerned with the implicit demand for the attributes of differentiated goods in hedonic pricing models, the literature has developed independently of modern econometric demand analysis. This study estimates factor demand systems using data on player characteristics employed by Major League Baseball teams, and associated estimated hedonic prices. It is found that the implicit demand for player attributes by teams is largely consistent with the predictions of the neoclassical theory of the firm, in contrast to the results often obtained by empirical demand studies using conventional data sets. (JEL D21)