Familiarity Bias and Perceived Future Home Price Movements

Journal of Behavioral Finance, Forthcoming

41 Pages Posted: 18 Mar 2011 Last revised: 22 Jun 2011

See all articles by Michael Seiler

Michael Seiler

College of William and Mary - Finance

Vicky L. Seiler

Johns Hopkins University

David M. Harrison

UCF; Texas Tech University

Mark Lane

affiliation not provided to SSRN

Date Written: March 13, 2011

Abstract

This study empirically confirms the existence of the status quo deviation aversion hypothesis, but not increasing status quo deviation aversion, in people who own their primary residence. The examination was conducted in the 20 Case-Shiller MSAs across the country. The results are systemic and do not vary substantially by demographic characteristics. However, variations are noted with different levels of real estate knowledge, income, purchase motive, relative home tenure, and excess relative housing risk.

Keywords: familiarity bias, behavioral real estate, status quo deviation aversion, increasing status quo deviation aversion

Suggested Citation

Seiler, Michael and Seiler, Vicky L. and Harrison, David M. and Lane, Mark, Familiarity Bias and Perceived Future Home Price Movements (March 13, 2011). Journal of Behavioral Finance, Forthcoming. Available at SSRN: https://ssrn.com/abstract=1784773

Michael Seiler (Contact Author)

College of William and Mary - Finance ( email )

VA
United States

HOME PAGE: http://mason.wm.edu/faculty/directory/seiler_m.php

Vicky L. Seiler

Johns Hopkins University ( email )

Baltimore, MD 20036-1984
United States

David M. Harrison

UCF ( email )

Orlando, FL 32816-1400
United States
407-823-1127 (Phone)

Texas Tech University ( email )

2500 Broadway
Lubbock, TX 79409
United States

Mark Lane

affiliation not provided to SSRN ( email )

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