Software development cost estimating models: an application of the hedonic pricing approach

Abstract

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 analysis 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.