An Empirical Investigation of Framing Effects in Real Estate Negotiations: A Study of Single-Family Home Sales

This paper integrates Prospect Theory and the concept of framing in a study of consumer negotiated pricing in a real estate context. Building on previously conducted experimental designs, a field survey indicated that home sellers using sales price as a reference point display greater willingness to make concessions than those who use equity as their reference point. Further, the third-party influence of the realtor was shown to alter Prospect Theory predictions so that even equity-based sellers became concessionary.

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	Gentry, James W Graduate Chair Expertise: Consumer Behavior Cross-Cultural Issues Family Decision Making International Consumerism International - Asia Marketing CBA 322 P.O. Box 880492 University of Nebraska-Lincoln Lincoln, NE 68588-0492, USA Phone: (402) 472-3278 Fax: (402) 472-9777 jgentry1@unl.edu	Gentry, James W	Marketing