The Endowment Effect and Housing Markets

Auteur

Mateusz Tomal is an assistant professor in the Department of Real Estate and Investment Economics at the Krakow University of Economics. His research interests include housing markets, real estate economics, behavioural economics, econometric modelling, spatial analysis, and local government efficiency.

Texte du rabat

This book aims to provide a comprehensive analysis of the so-called "endowment effect" in the housing market. In a nutshell, the phenomenon of overvaluing things we own which was first conceptualised in 1980 and has since been one of the most studied behavioural biases in economics.

Résumé
This book aims to provide a comprehensive analysis of the so-called endowment effect in the housing market. In a nutshell, the phenomenon of overvaluing things we own which was first conceptualised in 1980 and has since been one of the most studied behavioural biases in economics.

Contenu

Introduction

1. The endowment effect and housing studies: A review

Chapter overview

1.1. The essence of the endowment effect

1.1.1. The endowment effect definition

1.1.2. The origins of the WTA-WTP gap

1.1.3. Measurement of the WTA-WTP gap

1.2. Literature review

1.2.1. The method

1.2.2. Main findings from endowment effect studies: the exchange paradigm

1.2.3. Main findings from endowment effect studies: the valuation paradigm

1.2.4. Lessons learned and research gaps

1.3. Summary

Notes

References

2. Endowment effects in housing markets: Theoretical grounds

Chapter overview

2.1. The essence of the housing market

2.1.1. Housing goods and the housing market

2.1.2. Demand and supply for housing

2.1.3. Market equilibrium for heterogeneous housing goods

2.2. A conceptual model of endowment effects across sales and rental housing markets

2.2.1. The role of reference points

2.2.2. Endowment effects across housing markets in theory

2.2.3. Additional considerations

2.3. Summary

Notes

References

3. Endowment effects and the Polish housing market: A case study

Chapter overview

3.1. Characteristics of the Polish housing market

3.1.1. Housing statistics

3.1.2. Behavioural biases: A review

3.2. Endowment effect identification: Research results

3.2.1. Hypothesis tested

3.2.2. Experiment design

3.2.3. Econometric framework

3.2.4. Results and discussion

3.3. Summary

Notes

References

Conclusions