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 … at least as much loss aversion behavior as less experienced or smaller firms. We extend earlier research by examining how …

estate that loss aversion affects seller behavior in real estate markets. Consistent with prospect theory, we find that … losses loom larger than gains. We also compare loss aversion amongst the different investor types and our results are … indicative of a lower degree of loss aversion amongst private investors as compared to others, particularly institutional …