Behavioral Real Estate Decision Making

Mental Accounting and False Reference Points in Real Estate Investment Decisions by Seiler, Lane, and Seiler.

Excerpt

“If people were rational utility-maximizers, the decision to sell an asset would be independent of the price that was paid for the asset. The price paid in the past is a sunk cost, and should therefore be irrelevant to future buy/sell/hold decisions.”

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19. June 2010 by Miguel Barbosa
Categories: Behavioral Economics, Curated Readings | Leave a comment

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