IDEAS home Printed from https://ideas.repec.org/a/bla/eufman/v25y2019i5p1121-1149.html
   My bibliography  Save this article

Getting it right or getting it cursed: Auction prices in a residential real estate bubble

Author

Listed:
  • Clare Branigan
  • Cal Muckley
  • Paul Ryan

Abstract

This is the first study to test for a winner's curse in a bubble market. Our hand‐collected sample comprises the sequence of bids and the experience of the winning bidder at Irish residential real estate auctions, prior to the collapse of the bubble. Portfolios of practitioner‐ and hedonic pricing model‐selected self‐similar properties provide benchmark property price estimates. We show neither real estate investors nor owner occupiers shade auction bids to avoid the winner's curse and both raise bids in line with competition. Winning investor bidders pay more for properties, ride the wave of a property bubble, and potentially exacerbate it.

Suggested Citation

  • Clare Branigan & Cal Muckley & Paul Ryan, 2019. "Getting it right or getting it cursed: Auction prices in a residential real estate bubble," European Financial Management, European Financial Management Association, vol. 25(5), pages 1121-1149, November.
    • Handle: RePEc:bla:eufman:v:25:y:2019:i:5:p:1121-1149
    DOI: 10.1111/eufm.12200
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/eufm.12200
    Download Restriction: no
    File URL: https://libkey.io/10.1111/eufm.12200?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:eufman:v:25:y:2019:i:5:p:1121-1149. See general information about how to correct material in RePEc.

    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.

    We have no bibliographic references for this item. You can help adding them by using 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://edirc.repec.org/data/efmaaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.