Research

An Empirical Investigation of Framing Effects in Real Estate Negotiations: A Study of Single-Family Home Sales

This paper integrates Prospect Theory and the concept of framing in a study of consumer negotiated pricing in a real estate context. Building on previously conducted experimental designs, a field survey indicated that home sellers using sales price as a reference point display greater willingness to make concessions than those who use equity as their reference point. Further, the third-party influence of the realtor was shown to alter Prospect Theory predictions so that even equity-based sellers became concessionary.

Publication Information
Article Title: An Empirical Investigation of Framing Effects in Real Estate Negotiations: A Study of Single-Family Home Sales
Journal: Psychology and Marketing (May, 2008)
Vol. 25 Issue 5, p465-484, ISSN 0742-6046
Author(s): Witte, C. L.;  Grunhagen, M.;  Gentry, James W
Researcher Information
    
Gentry, James W
Gentry, James W
Emeritus
Expertise:
  • Consumer Behavior
  • Cross-Cultural Issues
  • Family Decision Making
  • International Consumerism
  • International - Asia
Marketing
HLH 345
P.O. Box 880492
University of Nebraska-Lincoln
Lincoln, NE 68588-0492, USA
Phone: (402) 472-2316
Fax: (402) 472-9777
jgentry@unl.edu