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Primary Wellesley Thesis Advisor
The landscape in the information technology (IT) sector is changing rapidly, and studying price trends for a newly developed IT services provides a great gateway to gauge these changes. Cloud computing—the on-demand delivery of computing resources and applications via the Internet—is rapidly expanding yet relatively little is know about trends in prices of cloud computing. For my senior economics thesis, I constructed quality-adjusted price indexes to quantify the rate of price change of Cloud Computing Services. I employ two hedonic regression methods as well as the matched model method and the results suggest that Cloud Computing Services experienced a sharp price decline from 2009-2015. My results also indicate that the price reduction trend of Cloud Computing Services is slightly sharper than that of Computing Products in general (hardware and software).