![]() Such a factor is included in hedonic pricing and it is impossible to get rid of it. Market restrictions relate to customer preferences. Speaking about the validation of measurements, we have to notice that independent variable measures should have superiority and should not be based on indirect indicators, since this directly affects the coefficients. In fact, not all the information can be collected, sometimes there is no access to some data, and sometimes you can miss something. Hedonic strategy implies that the specialists who form the price should have all the positive and negative characteristics of the property. Let's start with the availability of information. There are five main disadvantages of this strategy: availability of information and knowledge, verification of measurements, market limitations, multicollinearity and price fluctuations.
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