WHAT IS THE VALUE OF A NAME? CONSPICUOUS CONSUMPTION AND HOUSE PRICES

This is the first study to lend empirical support to anecdotal media reports that indicate that real property buyers pay price premiums based on property names. Using a standard hedonic price model, we explore the price effects of property names that include the terms ícountryî and ícountry clubî within a neighborhood. Buyers assign a premium of 4.2 percent for the term ícountryî and an additional 5.1 percent for the term ícountry clubî in the property name. Wealthier buyers tend to be the leaders in paying this price premium, but buyers are less willing to pay these premiums during recessionary times.