The hedonic price model for fusion on car market

Abstract

In Turkey, the production of the automobile started in 1965. Then, three major companies: Tofa-, Oyak, and Otosan, began to produce European size known automobiles, by assembling mostly imported parts. The usage percentage of local materials has increased by fast improvement on processes. Then, after 1983 the new international economic and political policy of Turkey on joint ventures with corporations of foreign enterprises, has opened up the automobile sector, and lately, normal competition conditions have occurred between different companies. So far, many other world wide companies, like Toyota, Honda, Hyundai and the others has shared the Turkey and Middle East auto market by building local factories. Hedonic Model Theory, has a very convenient basis and gives an alternative to the Turkey car market. The main aim of the study is to estimate the most proper Hedonic price model and estimate some values. As a first step, the theory of the Hedonic price model is discussed. Later, empirical analysis results and estimations of the best hedonic model is introduced for fusion between alternatives. Finally, fuzzified hedonic model estimates and normal model estimates are compared to determine the best information fusion which informs customers to a high level.