Loss Aversion and Seller Behavior: Evidence from the Housing Market

By David Genesove, Christopher J. Mayer. 2001

1,779 citations recorded by the source corpus.

Subfields: Economics and Econometrics, Management, Monitoring, Policy and Law

View Paper: https://www.semanticscholar.org/paper/88343b3ed591c8eb445a20a62776aaf4629d9e5d

How researchers see this paper

The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.

In Economics and Econometrics

1. Stefano DellaVigna
2. Colin F. Camerer
3. George Loewenstein
4. Nicholas Barberis
5. B. Kőszegi
6. David A. Hirshleifer
7. Malcolm P. Baker
8. Matthew Rabin

In Management, Monitoring, Policy and Law

1. Adam M. Guren
2. W. Strange
3. Mark Rush
4. Yu-Jane Liu
5. Gjergji Cici
6. Ulrike Malmendier
7. Atif R. Mian
8. Lu Han

Citations in the corpus

• Information cascades: Evidence from a field experiment with financial market professionals (2005, result): “This finding is consonant with Locke and Mann (2005), Genesove and Mayer (2001), and List (2003; 2004), who find, in much different environments, that market experience is associated with a decline in deviations from classical assumptions.”
• Is the Aggregate Investor Reluctant to Realise Losses? Evidence from Taiwan (2007, positive): “Studies have also found evidence of the disposition effect in the exercise of company stock options (Heath et al., 1999), residential housing (Genesove and Mayer, 2001), and professional futures traders (Locke and Mann, 2001).”
• Prospect Theory and the Disposition Effect (2008, background): “Grinblatt and Keloharju (2001) and Genesove and Mayer (2001) offer prospect theory as the sole theoretical motivation for their results. to sell with large gains of over 70% and over 100%, consistent with a capital gains tax lock-in effect.”
• Looking for Someone to Blame: Delegation, Cognitive Dissonance, and the Disposition Effect (2014, neutral): “Across asset markets, the disposition effect has been documented in stocks (Odean (1998)), executive stock options (Heath et al. (1999)), real estate (Genesove and Mayer (2001)), and on-line betting (Hartzmark and Solomon (2012)).”
• What is the role of the asking price for a house (2016, background): “Third, Genesove and Mayer (2001) present evidence consistent with loss aversion in housing markets.”
• Behavioral Obstacles in the Annuity Market (2007, positive): “In the housing market, which probably represents transactions affecting a greater fraction of typical household wealth than investing does, Genesove and Mayer (2001) found that listing prices are affected by earlier purchase prices, reflecting loss aversion in nominal terms.”
• The effect of reference point prices on mergers and acquisitions (2012, background): “The large literature on money illusion is based centrally on nominal reference point pricing.”
• Price-volume Correlation in the Housing Market: Causality and Co-movements (2010, background): “Genesove and Mayer (2001), Cauley and Pavlov (2002), and Engelhardt (2003) provide evidence for nominal loss aversion.”
• Estimates of the Impact of Crime Risk on Property Values from Megan's Laws (2008, positive): “Figure 2A shows the price 10 For empirical evidence on the impact of seller reservation prices and seller characteristics on sales prices, see David Genesove and Mayer (1997, 2001) Michel Glower, Donald R. Haurin, and Patric H. Hendershott (1998), John P. Harding, Stuart S. Rosenthal, and C. F. Sirm”