Mistake #37: The Effect of Previously Encountered Prices on Current Housing Demand

152 citations recorded by the source corpus.

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A Tough Act to Follow: Contrast Effects in Financial Markets (2018, unknown): “Outside of the lab, Bhargava and Fisman (2014) show contrast effects in mate choice using a speed dating field experiment and Simonsohn and Loewenstein (2006) and Simonsohn (2006) show contrast effects in consumer housing and commuting choices.”
Memory, Attention, and Choice* (2020, unknown): “Bordalo, Gennaioli, and Shleifer (2019) replicate Loewenstein and Simonsohn (2006)’s evidence using 20 additional years of data, and confirm this prediction: movers who have past experiences with prices close to the destination city are less influenced by city of origin prices.”
Uncertainty, Expectations and Behavioural Aspects of Housing Market Choices (2011, background): “Simonsohn & Loewenstein (2006) discuss the way in which in-migrants are slow to adjust their understanding of prevailing price levels when moving from high to low (or vice versa) priced housing markets and as a consequence their willingness to pay is different from that of established residents…”
Zero as a Special Price: The True Value of Free Products (2007, background): “For example, students whose last two digits of their social security numbers were in the bottom 20% of a distribution priced a bottle of 1998 Cotes du Rhone wine at $8.64 on average, whereas those whose last two digits were in the top 20% priced the same bottle at $27.91 (see also Simonsohn and Low”