Rule-Based and Case-Based Reasoning in Housing Prices
AbstractPeople reason about real-estate prices both in terms of general rules and in terms of analogies to similar cases. We propose to empirically test which mode of reasoning fits the data better. To this end, we develop the statistical techniques required for the estimation of the case-based model. It is hypothesized that case-based reasoning will have relatively more explanatory power in databases of rental apartments, whereas rule-based reasoning will have a relative advantage in sales data. We motivate this hypothesis on theoretical grounds, and find empirical support for it by comparing the two statistical techniques (rule-based and case-based) on two databases (rentals and sales).
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Bibliographic InfoPaper provided by Cowles Foundation for Research in Economics, Yale University in its series Cowles Foundation Discussion Papers with number 1493.
Length: 29 pages
Date of creation: Nov 2004
Date of revision:
Publication status: Published in B.E. Journal in Theoretical Economics (2007), 7(1) (Advances), Article 10
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Postal: Cowles Foundation, Yale University, Box 208281, New Haven, CT 06520-8281 USA
Other versions of this item:
- Gayer Gabrielle & Gilboa Itzhak & Lieberman Offer, 2007. "Rule-Based and Case-Based Reasoning in Housing Prices," The B.E. Journal of Theoretical Economics, De Gruyter, vol. 7(1), pages 1-37, April.
- Gabrielle Gayer & Itzhak Gilboa & Offer Lieberman, 2004. "Rule-Based and Case-Based Reasoning in Housing Prices," Levine's Bibliography 122247000000000672, UCLA Department of Economics.
- C1 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General
- C8 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs
- D8 - Microeconomics - - Information, Knowledge, and Uncertainty
- R1 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics
This paper has been announced in the following NEP Reports:
- NEP-ALL-2005-02-13 (All new papers)
- NEP-GEO-2005-02-13 (Economic Geography)
- NEP-URE-2005-02-13 (Urban & Real Estate Economics)
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