THE PRICE OF INATTENTION: EVIDENCE FROM THE SWEDISH HOUSING MARKET

• 成果类型: Article
• 署名作者: Repetto, Luca; Solis, Alex
• 署名单位: Uppsala University
• 刊物名称: JOURNAL OF THE EUROPEAN ECONOMIC ASSOCIATION
• ISSN/ISSBN: 1542-4766
• DOI: 10.1093/jeea/jvz065
• 发表日期: 2020
• 页码: 3261-3304
• 关键词: real-estate; information suppression; shrouded attributes; MODEL; experience; ECONOMICS; anomalies; SALIENCE; strategy

摘要

Do behavioral biases affect prices in a high-stakes market? We study the role of left-digit bias in the purchase of an apartment. Left-digit bias is the failure to fully process digits after the first, perceiving prices just below a round number (such as $3.99) as cheaper than their round counterpart ($4). Apartments with asking prices just below round millions are sold at a 3%-5% higher final price after an auction. This effect appears not to be driven by differences in observables or in real estate agents' behavior. Auctions for apartments listed just below round numbers are more competitive and attract more bidders and bids.