Mistake

The Effect of Previously Encountered Prices on Current Housing Demand

Dados Bibliográficos

ID9714264
AutoresUri Simonsohn (0000-0002-8601-7211, The Wharton School of the University of Pennsylvania), G Loewenstein (0000-0003-2790-0474, Carnegie Mellon University)
Ano2006
Volume116
Fascículo508
Páginas175-199
Data de publicação2006-01-01
Peer ReviewedSim
Open AccessSim
TipoARTICLE
PeriódicoThe Economic Journal (JOURNAL)
Identificadores do periódicoISSN: 0013-0133 • E-ISSN: 1468-0297
EditoraOxford University Press (OUP) (PUBLISHER)
DOI10.1111/j.1468-0297.2006.01052.x
OpenAlexW2157484476
IdiomaEN
Citações recebidas15
Referências citadas26

Based on contrast effects studies from psychology, we predicted that movers arriving from more expensive cities would rent pricier apartments than those arriving from cheaper cities. We also predicted that as people stayed in their new city they would get used to the new prices and would readjust their housing expenditures countering the initial impact of previous prices. We found support for both predictions in a sample of 928 movers from the PSID. Alternative explanations based on unobserved wealth and taste, and on imperfect information are ruled out. Copyright 2006 Royal Economic Society

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