 Hedonic prices and quality adjusted price indices powered by AIP. Bajari, Z. Cen, V. Chernozhukov, M. Manukonda, S. Vijaykumar, J. Wang, R. Huerta, J. Li, L. Leng, George Monokroussos and S. Wang Journal of Econometrics, 2025, vol. 251, issue C Abstract: We develop empirical models that efficiently process large amounts of unstructured product data (text, images, prices, quantities) to produce accurate hedonic price estimates and derived indices. To achieve this, we generate abstract product attributes (or “features”) from descriptions and images using deep neural networks. These attributes are then used to estimate the hedonic price function. To demonstrate the effectiveness of this approach, we apply the models to Amazon’s data for first-party apparel sales, and estimate hedonic prices. The resulting models have a very high out-of-sample predictive accuracy, with R2 ranging from 80% to 90%. Finally, we construct the AI-based hedonic Fisher price index, chained at the year-over-year frequency, and contrast it with the CPI and other electronic indices. Keywords: Hedonic prices; Price index; Transformers; Deep learning; Artificial intelligence (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:econom:v:251:y:2025:i:c:s030440762500106x DOI: 10.1016/j.jeconom.2025.106052 Access Statistics for this article Journal of Econometrics is currently edited by T. Amemiya, A. R. Gallant, J. F. Geweke, C. Hsiao and P. M. Robinson More articles in Journal of Econometrics from Elsevier |
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