Mistake #37: The Effect of Previously Encountered Prices on Current Housing Demand
AbstractBased 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. Copyright 2006 Royal Economic Society.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Royal Economic Society in its journal The Economic Journal.
Volume (Year): 116 (2006)
Issue (Month): 508 (01)
Contact details of provider:
Postal: Office of the Secretary-General, School of Economics and Finance, University of St. Andrews, St. Andrews, Fife, KY16 9AL, UK
Phone: +44 1334 462479
Web page: http://www.res.org.uk/
More information through EDIRC
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Pascaline Dupas, 2010.
"Short-Run Subsidies and Long-Run Adoption of New Health Products: Evidence from a Field Experiment,"
NBER Working Papers
16298, National Bureau of Economic Research, Inc.
- Pascaline Dupas, 2010. "Short-Run Subsidies and Long-Run Adoption of New Health Products: Evidence from a Field Experiment," Working Papers id:2498, eSocialSciences.
- Zacharias Maniadis & Fabio Tufano & John A List, 2013. "One Swallow Doesnâ€™t Make a Summer: New Evidence on Anchoring Effects," Discussion Papers 2013-07, The Centre for Decision Research and Experimental Economics, School of Economics, University of Nottingham.
- Zacharias Maniadis & Fabio Tufano & John A. List, 2014.
"One Swallow Doesn't Make a Summer: New Evidence on Anchoring Effects,"
American Economic Review,
American Economic Association, vol. 104(1), pages 277-90, January.
- Zacharias Maniadis & Fabio Tufano & John List, 2013. "One Swallow Does not Make a Summer: New Evidence on Anchoring Effects," Levine's Working Paper Archive 786969000000000824, David K. Levine.
- Holger Herz & Dmitry Taubinsky, 2013. "Market experience is a reference point in judgments of fairness," ECON - Working Papers 128, Department of Economics - University of Zurich.
- Violand, Wendy & Simon, Arnaud, 2011. "Real estate brokers: do they inflate housing prices? The case of France," Economics Papers from University Paris Dauphine 123456789/515, Paris Dauphine University.
- Andrea Isoni & Peter Brooks & Graham Loomes & Robert Sugden, 2011. "Do markets reveal preferences - or shape them?," Working Paper series, University of East Anglia, Centre for Behavioural and Experimental Social Science (CBESS) 11-03, School of Economics, University of East Anglia, Norwich, UK..
- Kristina Shampan'er & Dan Ariely, 2006. "How small is zero price? : the true value of free products," Working Papers 06-16, Federal Reserve Bank of Boston.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley-Blackwell Digital Licensing) or (Christopher F. Baum).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.