Food for Thought: Appraisal Dataset
Alex Tajirian
September 06, 2006
Domain name sales prices are neither the only nor
necessarily the best pricing dataset for performing comparables-based
appraisals. An alternative dataset with over 400 times more price
observations exists. And no! It is not based on prices of unsold
domains[1] nor is it based on peer
valuations whose methodology is driven by ‘the Law of Large Numbers.’
Thus, people who claim that there aren’t enough observations to
conduct statistical tests are being stubborn.
Putting the above noted large dataset aside,
there remains the interesting question as to why aren’t any of the
appraisal competitors using the information of exchange listed unsold
domain names? One possible explanation can be based on scientific
findings that humans (and other animals) only notice what has happened
and ignore what has not happened, i.e., they notice a sale that has
taken place, but ignore the no sales, whereby no transaction has taken
place. Obviously, all relevant information needs to be included for
more reliable predictions. I will leave other explanations to your
imagination.
|