✦ LIBER ✦
An empirical investigation of framing effects in negotiations: A study of single-family home sales
✍ Scribed by Carl L. Witte; Marko Grünhagen; James W. Gentry
- Publisher
- John Wiley and Sons
- Year
- 2008
- Tongue
- English
- Weight
- 152 KB
- Volume
- 25
- Category
- Article
- ISSN
- 0742-6046
No coin nor oath required. For personal study only.
✦ Synopsis
Abstract
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. © 2008 Wiley Periodicals, Inc.