Price/performance of desktop computers in the U.S. computer industry

Throughout the history of computing, a topic of major interest has been the relationship between the cost of a computer system and its power. Several researchers, including Grosch, Knight, and others have attempted to quantify the relationship between price and power for computer systems in general. However, these studies did not focus on the price/performance ratio for desktop computers. The purpose of the present study was to develop a reliable model that can identify the factors which most significantly affect the price of desktop computers. The model is based upon various hardware characteristics, such as clock speed, RAM, inclusion of hard disk as standard equipment, type of microchips, and other time related variables (e.g. year of introduction). Once the model has been developed, it can serve as an aid in managerial decision-making process.