Endowment Effect and Housing Markets

Endowment Effect and Housing Markets

Theory and Evidence from Poland

Tomal, Mateusz

Taylor & Francis Ltd

08/2024

158

Dura

9781032833385

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Introduction

1. The endowment effect and housing studies: A review

Chapter overview

1.1. The essence of the endowment effect

1.1.1. The endowment effect definition

1.1.2. The origins of the WTA-WTP gap

1.1.3. Measurement of the WTA-WTP gap

1.2. Literature review

1.2.1. The method

1.2.2. Main findings from endowment effect studies: the exchange paradigm

1.2.3. Main findings from endowment effect studies: the valuation paradigm

1.2.4. Lessons learned and research gaps

1.3. Summary

Notes

References

2. Endowment effects in housing markets: Theoretical grounds

Chapter overview

2.1. The essence of the housing market

2.1.1. Housing goods and the housing market

2.1.2. Demand and supply for housing

2.1.3. Market equilibrium for heterogeneous housing goods

2.2. A conceptual model of endowment effects across sales and rental housing markets

2.2.1. The role of reference points

2.2.2. Endowment effects across housing markets in theory

2.2.3. Additional considerations

2.3. Summary

Notes

References

3. Endowment effects and the Polish housing market: A case study

Chapter overview

3.1. Characteristics of the Polish housing market

3.1.1. Housing statistics

3.1.2. Behavioural biases: A review

3.2. Endowment effect identification: Research results

3.2.1. Hypothesis tested

3.2.2. Experiment design

3.2.3. Econometric framework

3.2.4. Results and discussion

3.3. Summary

Notes

References

Conclusions
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behavioural economics;behavioural biases;housing market;endowment effect;housing tenure;homeownership;renting;case study;loss aversion