What Does "Hedonic" Mean in an Economic Context?

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In an economic context, "hedonic" means of or relating to utility. (In a more general sense, hedonic is related in its etymology to hedonism, which is the search for pleasure.)  A hedonic econometric model is one where the independent variables are related to quality; e.g. the quality of a product that one might buy or the quality of a job one might take.

A hedonic model of wages might correspond to the idea that there are compensating differentials -- that workers would get higher wages for jobs that were more unpleasant.

Terms related to Hedonic:

  • Exponential Utility Function
  • CES Utility
  • Expected Utility

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