where is hedonic pricing most commonly used 
the hedonic pricing method is most commonly used in real estate the price of a building or piece of land is determined by characteristics of both the property or land itself and its surrounding environment hedonic pricing is used to estimate the extent to which each factor affects the market price of the property the bottom linehedonic pricing identifies price factors according to the premise that price is determined by internal characteristics of the good being sold and by external factors affecting it the model is often used to estimate quantitative values for environmental or ecosystem services that directly affect market prices for homes 