Preprint / Version 1

Behavioral Biases in the Housing Market

##article.authors##

  • Jingyi Liu

DOI:

https://doi.org/ 10.47611/harp.216

Keywords:

Behavioral, Biases, Housing

Abstract

Behavioral economics has shed light on the complex and inefficient housing market caused by unconscious behavioral bias. This paper investigates heuristics and bias on both parties of housing transactions. Specifically, the existence and impact of the endowment effect are analyzed based on the sellers’ perspective while status quo bias and anchoring effect are interpreted with respect to buyers. A simulation game of the housing market, a community housing market-related program and a professional analyzing app designed to offer a rational anchor are considered as solutions to the appearance of the endowment effect, status quo bias and anchoring effect during the decision-making process in the housing market.

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Posted

2022-10-24