Seiler, Michael; Lane, Mark; Harrison, David - In: The Journal of Real Estate Finance and Economics 49 (2014) 4, pp. 621-653
This study examines the herding behavior of individuals in the context of their willingness to strategically default on a mortgage based on the (falsely) observed behavior of those around them. We find that homeowners are easily persuaded to follow the herd and adopt a strategic default...