Using Experimental and Neurological Data to Gain a Deeper Understanding of Realization Utility Theory

44 Pages Posted: 4 Jun 2020

See all articles by Scott Gibson

Scott Gibson

affiliation not provided to SSRN

Michael Seiler

College of William and Mary

Eric Walden

Alfred University - College of Business

Date Written: Winter 2019

Abstract

Starting with the premise that realization utility theory helps explain trading behavior, this study combines a carefully crafted experimental design with functional magnetic resonance imaging technology to offer a more inclusive examination of factors that affect REIT trading behavior beyond whether a REIT is simply trading up or down. We add to the nascent field of neurological real estate by finding that local gains/loss domains are more relevant than are global gain/loss considerations, financial skewness is a significant determinant of trading behavior, and that performance inside the REIT market influences how hard subjects think when performing tasks outside the market.

Suggested Citation

Gibson, Scott and Seiler, Michael and Walden, Eric, Using Experimental and Neurological Data to Gain a Deeper Understanding of Realization Utility Theory (Winter 2019). Real Estate Economics, Vol. 47, Issue 4, pp. 1119-1162, 2019, Available at SSRN: https://ssrn.com/abstract=3617146 or http://dx.doi.org/10.1111/1540-6229.12164

Scott Gibson (Contact Author)

affiliation not provided to SSRN

Michael Seiler

College of William and Mary ( email )

P.O. Box 8795
Williamsburg, VA 23185
United States

Eric Walden

Alfred University - College of Business

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