Preference Construction and Housing Choice: The Role of the Estate Agent

2011 ◽  
Author(s):  
Peter J. Scott ◽  
Colin M. Lizieri
Keyword(s):  
Housing Choice ◽  
Preference Construction

Testing the Role of Contextual Deliberation in the Compromise Effect

2021 ◽  
Author(s):  
Liang Guo
Keyword(s):  
Information Retrieval ◽  
Response Time ◽  
Context Information ◽  
Compromise Effect ◽  
Economic Theories ◽  
Task Order ◽  
Preference Construction ◽  
Endogenous Information ◽  
Classical Economic

Many phenomena of preference construction demonstrate a violation of the rationality premise in classical economic theories. One of the most well-known examples of preference construction is the compromise effect. This puzzling anomaly can be rationalized by contextual deliberation (i.e., endogenous information retrieval/acquisition that can partially resolve utility uncertainty before choice). In this research, we investigate the empirical validity of this explanation by performing falsification tests for its necessary predictions and identifying it from other potential accounts. We conduct five experiments with more than 1,000 participants and show that the compromise effect can be positively mediated by response time and cannot be eliminated by context information, but it can be moderated by manipulating the level of deliberation (i.e., time constraint, preference articulation, task order). These findings are consistent with the predictions of the theory of contextual deliberation. We also show that, on average, contextual deliberation (as proxied by response time) can uniquely account for about half of the total compromise effect. This paper was accepted by Yan Chen, behavioral economics and decision analysis

Generalized Log-Linear Models of Housing Choice

1988 ◽  
Vol 20 (1) ◽  
pp. 55-69 ◽  
Author(s):  
M C Deurloo ◽  
F M Dieleman ◽  
W A V Clark
Keyword(s):  
Linear Models ◽  
Nonlinear Effects ◽  
Design Matrix ◽  
Housing Choice ◽  
Ordered Categories ◽  
Public And Private ◽  
Income Effects ◽  
Additional Information ◽  
Log Linear

By incorporating the structure of polytomous variables with ordered categories in the design matrix, nonstandard logit models are used to analyze housing choice. The detailed effects of income, age, and type of housing market on choice are examined. The additional information that is incorporated in the modeling leads to a more parsimonious representation of the data. The results confirm the central and substantial role of income; income effects are linear for owners but there are nonlinear effects for public and private renters. There are important age and region interaction effects on choice for households originally in the rental sector, and for former owners the value of the previous dwelling influences choice.

scholarly journals On the Determinants of Slum Formation

2019 ◽  
Vol 129 (621) ◽  
pp. 1971-1991 ◽  
Author(s):  
Tiago Cavalcanti ◽  
Daniel Da Mata ◽  
Marcelo Santos
Keyword(s):  
Urban Population ◽  
Urban Poverty ◽  
Strong Impact ◽  
Urban Migration ◽  
Housing Choice ◽  
Policy Interventions ◽  
Ex Ante ◽  
Rural Urban Migration ◽  
Slum Formation

Abstract We construct a simple model of a city with heterogeneous agents and housing choice to explain the determinants of slums, home to about one-third of the urban population in developing countries. The model supports the main empirical evidence regarding slum formation and is able quantitatively to assess the role of each determinant of slum growth. We show that urban poverty, inequality and rural–urban migration explain much of the variation in slum growth in Brazil from 1980 to 2000. Ex ante evaluation of the impacts of policy interventions shows that removing barriers to formalisation has a strong impact on slum reduction.

The Role of Regulatory Focus in Preference Construction

2006 ◽  
Vol 43 (1) ◽  
pp. 28-38 ◽  
Author(s):  
Jing Wang ◽  
Angela Y. Lee
Keyword(s):  
Regulatory Focus ◽  
Preference Construction
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