Purpose – China has witnessed low and stable consumer price inflation in conjunction with high and volatile food price inflation over the past decade. The purpose of this paper is to examine questions about whether or not the link between consumer price inflation and food price inflation has...

Loss aversion is a core concept in prospect theory that refers to people's asymmetric attitudes with respect to gains and losses. More specifically, losses loom larger than gains. With the capability of loss aversion to explain economic phenomena, some of which are puzzling under expected...

Using models from the happiness and the behavioural economics literature, we develop an analytical framework to investigate the relationship between housing wealth and residential satisfaction. Two hypotheses, i.e., social comparison and adaptation, are tested by using household panel survey...

This paper provides novel evidence for reference dependence and inattention behaviours in the housing market. If previous sales prices are round numbers, defined as multiples of £1,000 (e.g. £231,000), subsequent prices entail a considerable premium relative to similar properties previously...

We analyse land transaction and residential development data from Beijing, China and identify that developers’ evaluation of land transaction exhibits reference dependence and loss aversion. Developers with prior land transaction losses set higher house prices than those without prior losses....