Mistake #37: The effect of previously encountered prices on current housing demand

Uri Simonsohn, George Loewenstein

Producció científica: Article en revista indexadaArticleAvaluat per experts

92 Cites (Scopus)

Resum

Based on contrast effects studies from psychology, we predicted that movers arriving from more expensive cities would rent pricier apartments than those arriving from cheaper cities. We also predicted that as people stayed in their new city they would get used to the new prices and would readjust their housing expenditures countering the initial impact of previous prices. We found support for both predictions in a sample of 928 movers from the PSID. Alternative explanations based on unobserved wealth and taste, and on imperfect information are ruled out.

Idioma originalAnglès
Pàgines (de-a)175-199
Nombre de pàgines25
RevistaEconomic Journal
Volum116
Número508
DOIs
Estat de la publicacióPublicada - de gen. 2006
Publicat externament

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