TY - JOUR ID - 4812 TI - Hedonic Pricing under Uncertainty: A Theoretical Consumer Behavior Model JO - Iranian Journal of Economic Studies JA - IJES LA - en SN - 2322-1402 AU - Mousavi Jahromi, Yeganeh AU - Farzin Motamed, Arghavan AD - Department of Economics, , Payame Noor University, Tehran, Iran. AD - CEO Consultant, Bank Tosse Taavon, Tehran, Iran. Y1 - 2018 PY - 2018 VL - 7 IS - 1 SP - 55 EP - 60 KW - Hedonic Pricing KW - Marginal Rate of Substitution KW - Uncertainity KW - Consumer behavior KW - Virtual Markets DO - 10.22099/ijes.2018.27490.1396 N2 - A model of consumer behavior has been formulated by using an additive utility function and the hedonic pricing approach, in a virtual market. Since, there is a time lag between ordering and purchasing products (goods and services) online and receiving them, it means the consumer makes decision under uncertainty. The level of satisfaction with products with distinctive characteristics is described by the probability vector of their expected quality. Consumer choice, as well as interpretation of the equilibrium, is derived from a mathematical process. The results show that hedonic pricing which indicates willingness to pay is affected by probabilities of the expected quality or satisfaction with product characteristics. In addition, the expected marginal rate of substitution for every two characteristics of the product equals to the ratio for probabilities of the expected quality of them. UR - https://ijes.shirazu.ac.ir/article_4812.html L1 - https://ijes.shirazu.ac.ir/article_4812_002ac00963b93737df56127c415e61be.pdf ER -