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The price premium method is used to assess the value of intangible assets based on the difference in prices paid for transactions involving similar assets with and without the intangible asset in question. For instance, if a company hopes to sell a product with a patented technology, the price premium method examines the price difference between the company’s product and similar products without the patented technology to estimate the value contributed by the intangible asset. By comparing market transactions, this method helps managers understand the added value that customers are willing to pay for products which rely on the intangible asset, allowing them to make informed decisions about its strategic importance and potential for generating revenue.