What is the Value of a Name? Conspicuous Consumption and House Prices
This study is the first to lend empirical support to anecdotal media reports that indicate that real property buyers are willing to 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 â€œcountryâ€ and â€œcountry clubâ€ within a neighborhood. We find that buyers assign a premium of 4.2 percent for the term â€œcountryâ€ and an additional 5.1 percent for the term â€œcountry clubâ€ in the property name. We also find that wealthier buyers tend to be the leaders in paying this price premium, but that buyers are less willing to pay these premiums during recessionary times.
Volume (Year): 33 (2011)
Issue (Month): 1 ()
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