||Since the first generation of iphone was released on June 2007 by Apple Inc., the manufacturers have continually provided a variety of functions and features of smart phones. The aim of this paper is to analyze the effect of functions and features of smart phones to its prices and to understand how suppliers make prices and how much consumers are willing to pay. The data we use are from Cellphone GoGo magazine which is published in Taiwan, and Sogi website, over the period from August 2007 to September 2014.|
This paper is divided into two models. One is Hedonic Price Model of semi-log form, use this model to calculate the average marginal prices for every characteristic variables. The other model is under panel data estimation, compare one-way fixed effect model, two-way fixed effect model, one-way random effect model, and two-way random effect model, and discuss the differences between the model with brand ASUS and without brand ASUS.
The results show that in the Hedonic Price Model of semi-log form, the maximum amount of parameters of hedonic price function related to the following variables respectively: brand, time dummy variables, and monitor size. In panel data model, no matter in one-way fixed effect model, two-way fixed effect model, one-way random effect model, or two-way random effect model, R^2 under the data with brand ASUS are smaller than the data without brand ASUS. It shows that the explanation of the characteristic variables will decrease under the data with brand ASUS. It also shows that the relationship between features of smart phones and its prices are unclear under the brand ASUS.
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