Application of Behavioral Finance Theories in Residential Property Market - Strand Books
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Homebuyers aren't the rational agents economists assumed — behavioral finance reveals the hidden biases quietly driving some of the biggest financial decisions people ever make.
Behavioral FinanceProspect TheoryAnchoring BiasBounded Rationality
Theory Briefing
- Traditional economic theory assumes property buyers act rationally, weighing price and logic — behavioral finance says otherwise.
- Cognitive biases like anchoring and loss aversion systematically distort how buyers value and negotiate residential property.
- Understanding these irrational patterns could reshape how agents, developers, and policymakers design housing markets.