Behavioural biases among real estate investment decision makersHas anyone seen my neo-cortex? I’m sure I left it here somewhere.
||Ryan, Stephen; Matthew Richardson
||Behavioural biases among real estate investment decision makersHas anyone seen my neo-cortex? I’m sure I left it here somewhere.
||22nd Annual European Real Estate Society Conference in Istanbul, Turkey
||Purpose – To examine whether investors in commercial real estate exhibit some important behavioural biases, namely: anchoring, herding, framing/nudging, loss aversion and over-confidence. If so, are there steps that investors and their agents ( fund managers and advisors) could take (a) to temper the effects of their own biases and (b) to exploit the presence of such biases in other market participants? __Design/methodology/approach – Analysis of historic data sources at asset and market levels and over different time periods, with focus on identifying the specific biases listed above, singly and in combination__Findings – Understanding of behavioural bias merits greater attention. __Research limitations/implications – Reliance on inferences from historic data__Practical implications – May help develop clearer understanding of market drivers and improved decision-making for market participants. __Originality/value – New research within the real estate industry that could help investors understand the highly cyclical nature of commercial real estate investment markets__Keywords: behavioural biases – anchoring – herding – framing - loss aversion – over-confidence__Article Classification: Viewpoint_
||Anchoring, Loss aversion, Herding, Over-confidence, Framing
||file.ppt (1,534,970 bytes)
Post discussion ...
||Real Estate Finance & Investment
These pages are best viewed with any standards compliant browser (e.g. Mozilla).