We consider two famous phenomena from behavioral economics: loss aversion (based on prospect theory), and anchoring, for the role they played in the pricing of commercial property in the U.S. during the 2000s decade. We find that loss aversion played a major role, approximately as big as was...

We consider two famous phenomena from behavioral economics: loss aversion (based on prospect theory), and anchoring, for the role they played in the pricing of commercial property in the U.S. during the 2000s decade. We find that loss aversion played a major role, approximately as big as was...

This paper empirically tests for the predictions of prospect theory and the anchoring-and-adjustment heuristic in commercial real estate pricing. Using US market data, we confirm and extend previous findings in both housing and commercial real estate that loss aversion affects seller behavior in...

The study quantifies liquidity impacts measured by the Demand-Supply Gap in terms of asset pricing implications for US private commercial real estate markets of the COVID-19 crisis. So far (using data up to April 2020), New York is hardest hit among the eight metros examined, with a predicted...

This paper presents a model of real estate asset price dynamics based on empirical evidence, economic theory, and common sense. We note important differences between real estate versus stock market price dynamics. We then use this model to simulate the investment performance of archetypical...

Conventional real estate price indices provide a single measure for the path of asset prices over time (controlling for the quality of the representative or average property). But it could be that properties have different price dynamics based on the price segment they are traded in. On the...