WHAT IS THE VALUE OF A NAME? CONSPICUOUS CONSUMPTION AND HOUSE PRICES
||Zahirovic-Herbert, Velma; Chatterjee, Swarn
||WHAT IS THE VALUE OF A NAME? CONSPICUOUS CONSUMPTION AND HOUSE PRICES
||17th Annual European Real Estate Society Conference in Milan, Italy
||This is the first study to lend empirical support to anecdotal media reports that indicate that real property buyers pay price premiums based on property names. Using a standard hedonic price model, we explore the price effects of property names that include the terms “country” and “country club” within a neighborhood. Buyers assign a premium of 4.2 percent for the term “country” and an additional 5.1 percent for the term “country club” in the property name. Wealthier buyers tend to be the leaders in paying this price premium, but buyers are less willing to pay these premiums during recessionary times.
||hedonic house price, property names, subdivision specific amenities, conspicuous consumption
||file.pdf (175,663 bytes)
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||Real Estate Valuation (3)
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