A Hedonic Regression Model for Internet Domain Name Valuation
Hedonic Regression is applied to domain name transactional data representing 155 sales from 1999 through 2002. The resulting model estimates the market price for Internet domains by using characteristics of the domain name and an Internet industry stock market index. With this model, estimates of domain value can he obtained throughout time. From their peak, estimated domain name values lost about 95% of their market value.
Contributor Notes
Dr. Phillips is Professor of Finance, Real Estate, and Insurance at the College of Business and Economics, California State University, Northridge, and a principal of Findlay, Phillips and Associates, a firm providing valuation, finance, economics, and statistics consultation services.