Reference Points Spillovers: Micro-Level Evidence from Real Estate

• 成果类型: Article
• 署名作者: Giacoletti, Marco; Parsons, Christopher A.
• 署名单位: University of Southern California
• 刊物名称: REVIEW OF FINANCIAL STUDIES
• ISSN/ISSBN: 0893-9454
• DOI: 10.1093/rfs/hhad037
• 发表日期: 2023
• 页码: 4636
• 关键词: Loss aversion; seller behavior; prospect-theory; experiences; DYNAMICS; search; prices; MARKET

摘要

Homeowners who originally bought when marketwide price levels were high (low) fetch high (low) sales prices and rents, even decades later. We study the propagation of reference-dependence to neighboring listings. The spillover reference point effect is about one-half as large as the own reference point effect. Neither house quality nor location appears capable of explaining the result. Using a simple model to provide empirical predictions, we find support for a competition-based mechanism. We quantify the aggregate effect of own and spillover reference point effects on aggregate prices and/or rents at the ZIP code level. Authors have furnished an , which is available on the Oxford University Press Web site next to the link to the final published paper online.