Software development cost estimating models were
analyzed using an application of the hedonic pricing
approach. Several recently proposed software cost
estimating tools were surveyed for the purpose of revealing
their roots in the hedonic pricing approach. The analysis
includes discussion of the hedonic pricing approach, the
logic of several software cost models, and anlysis of the
models' hedonic pricing traits.
Hedonic prices are the implicit prices of attributes of I
differentiated products as revealed in the market through
attribute levels associated with market-clearing prices. Several aspects of the software costing models fit within
the hedonic pricing approach. Many of the models base cost
estimates on the varying quantities of software product attributes (e.g., complexity of program, schedule
requirements, etc.). Similarities and differences of traits
among cost models were noted.
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