Behavioural biases among real estate investment decision makers: Has anyone seen my neo-cortex? I'm sure I left it here somewhere

Stephen Ryan and Matthew Richardson

ERES from European Real Estate Society (ERES)

Abstract: Purpose – To examine whether investors in commercial real estate exhibit some important behavioural biases, namely: anchoring, herding, framing/nudging, loss aversion and over-confidence. If so, are there steps that investors and their agents ( fund managers and advisors) could take (a) to temper the effects of their own biases and (b) to exploit the presence of such biases in other market participants?Design/methodology/approach – Analysis of historic data sources at asset and market levels and over different time periods, with focus on identifying the specific biases listed above, singly and in combinationFindings – Understanding of behavioural bias merits greater attention.Research limitations/implications – Reliance on inferences from historic dataPractical implications – May help develop clearer understanding of market drivers and improved decision-making for market participants.Originality/value – New research within the real estate industry that could help investors understand the highly cyclical nature of commercial real estate investment marketsKeywords: behavioural biases – anchoring – herding – framing - loss aversion – over-confidenceArticle Classification: Viewpoint

JEL-codes: R3 (search for similar items in EconPapers)
Date: 2015-07-01
New Economics Papers: this item is included in nep-cbe
References: Add references at CitEc
Citations:

Downloads: (external link)
https://eres.architexturez.net/doc/oai-eres-id-eres2015-105 (text/html)
https://eres.architexturez.net/system/files/eres2015_105.content.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:arz:wpaper:eres2015_105

Access Statistics for this paper

More papers in ERES from European Real Estate Society (ERES) Contact information at EDIRC.
Bibliographic data for series maintained by Architexturez Imprints ().