Estimating computer depreciation using online auction data
Personal computer prices decline rapidly with age. The price of a four-year-old used computer is almost one tenth of the price of a new one. This paper provides new evidence on why prices of personal computers decline so rapidly as they age, using online auction data from eBay. An innovative feature of the dataset is that it contains actual transaction prices for both desktops and notebooks, as well as exact age in days. By using a sample of used Dell computers, we examine the causes of this rapid decline. We find that age is not important due to minimal physical deterioration. Prices decline because used computers have inferior technical characteristics compared to new ones. In addition, a computer loses about 20-25 percentage points of its value the instant that it is sold. Finally, some auction characteristics are significant.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 20 (2011)
Issue (Month): 2 ()
|Contact details of provider:|| Web page: http://www.tandfonline.com/GEIN20|
|Order Information:||Web: http://www.tandfonline.com/pricing/journal/GEIN20|
When requesting a correction, please mention this item's handle: RePEc:taf:ecinnt:v:20:y:2011:i:2:p:183-204. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Michael McNulty)
If references are entirely missing, you can add them using this form.