Rule-Based and Case-Based Reasoning in Housing Prices

Gabrielle Gayer, Itzhak Gilboa and Offer Lieberman
Additional contact information
Gabrielle Gayer: Tel Aviv University
Offer Lieberman: Technion-Israel Institute of Technology

No 1493, Cowles Foundation Discussion Papers from Cowles Foundation for Research in Economics, Yale University

Abstract: People reason about real-estate prices both in terms of general rules and in terms of analogies to similar cases. We propose to empirically test which mode of reasoning fits the data better. To this end, we develop the statistical techniques required for the estimation of the case-based model. It is hypothesized that case-based reasoning will have relatively more explanatory power in databases of rental apartments, whereas rule-based reasoning will have a relative advantage in sales data. We motivate this hypothesis on theoretical grounds, and find empirical support for it by comparing the two statistical techniques (rule-based and case-based) on two databases (rentals and sales).

Keywords: Housing; similarity; regression; case-based reasoning; rule-based reasoning (search for similar items in EconPapers)
JEL-codes: C1 C8 D8 R1 (search for similar items in EconPapers)
Pages: 29 pages
Date: 2004-11
New Economics Papers: this item is included in nep-geo and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Published in B.E. Journal in Theoretical Economics (2007), 7(1) (Advances), Article 10

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Journal Article: Rule-Based and Case-Based Reasoning in Housing Prices (2007)
Working Paper: Rule-Based and Case-Based Reasoning in Housing Prices (2007)
Working Paper: Rule-Based and Case-Based Reasoning in Housing Prices (2004)
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