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Research Library

Article

Vol. 25 Issue 5, p465-484, ISSN 0742-6046
An Empirical Investigation of Framing Effects in Real Estate Negotiations: A Study of Single-Family Home Sales
Psychology and Marketing (May, 2008)

 

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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