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作者

来源

REAL ESTATE ECONOMICS,Vol.45,Issue4,P.861-897

语言

英文

关键字

REAL-ESTATE; LOSS AVERSION; SELLER BEHAVIOR; EURO-ILLUSION; INCENTIVES; COMPENSATION; CHANGEOVER; PERCEPTION; SEARCH; COSTS

作者单位

[Ben-Shahar, Danny] Tel Aviv Univ, Sch Management, Alrov Inst Real Estate Res, IL-6139001 Tel Aviv, Israel. [Golan, Roni] Technion Israel Inst Technol, Fac Architecture & Town Planning, Ctr Urban & Reg Studies, IL-32000 Technion City Haifa, Israel. Ben-Shahar, D (reprint author), Tel Aviv Univ, Sch Management, Alrov Inst Real Estate Res, IL-6139001 Tel Aviv, Israel. E-Mail: bdanny@post.tau.ac.il; rgolan@tx.technion.ac.il

摘要

The currency substitution experienced by the Israeli real estate market in the past decades serves as a unique case for studying the effect of the anchoring heuristic on prices. We hypothesize that players utilize current and past exchange rates between the old and new currency to affect the closing price in their favor. Results of micro- and macro-level estimations indicate that exchange rate fluctuations associate with an upward ratchet price effect. Furthermore, we find that the ratchet price mechanism disappears once the currency substitution is completed. These findings provide new evidence of the effect of anchoring on a market whose transactions involve substantial, long-term economic consequences.