The Impacts of Task Complexity, Overconfidence, Confirmation Bias, Customer Influence, and Anchoring on Variations in Real Estate Valuations

Lee, Chun-Chang; Lee, Hsueh-Yung; Yeh, Wen-Chih; Zheng, Yu

doi:10.3846/ijspm.2022.16704

Cited by 3 publications

(1 citation statement)

References 49 publications

(96 reference statements)

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“…Overconfidence Bias has been the subject of many investor studies (Alp Coşkun et al, 2023;Alsabban & Alarfaj, 2020;Amalia Yunia Rahmawati, 2020;Isidore R & Christie, 2019;Koc, 2021;Lee et al, 2022;Madaan & Singh, 2019). Research findings suggest that overconfidence bias, at times, can result in impulsive and overly confident investment decisions.…”

Section: The Influence Of Overconfidence Bias On Investment Decisionsmentioning

confidence: 99%

A Literature Review on the Influence of Availability Bias and Overconfidence Bias on Investor Decisions

Rahmawati,

Santi

2023

EAJMR

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This research examines the impact of Availability Bias and Overconfidence Bias on investment decisions. Utilizing a literature review approach and VOSviewer analysis, this study explores how these biases affect investor decision-making processes and potential mitigation strategies. The objective is to highlight the significance of understanding and mitigating these biases in achieving more rational investment decisions. The findings underscore the potential negative effects of both biases, leading to overconfident and less rational investment decisions. Awareness of their interplay is crucial, as they reinforce each other's negative effects on investment decision-making. Overcoming these cognitive biases is essential for more effective investment decision-making. This research contributes insights into mitigating biases, aiding in a more balanced and rational approach to investment decision-making.

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Section: The Influence Of Overconfidence Bias On Investment Decisionsmentioning

confidence: 99%

A Literature Review on the Influence of Availability Bias and Overconfidence Bias on Investor Decisions

Rahmawati,

Santi

2023

EAJMR

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Behavioural biases in real estate investment: a literature review and future research agenda

Singh,

Kumar,

Goel

et al. 2023

Humanit Soc Sci Commun

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Psychological aspects of human nature cause behavioural biases and can lead to decisions that differ from what is expected based solely on rational analysis. The effects of behavioural biases on financial markets like stocks and mutual funds have been studied previously, but real estate has yet to receive much attention. The existing works in the real estate domain have focused on different biases, but no study has examined the works already done to provide concise documentation of these past works. Thus, this article is an earnest attempt to fill that gap. This paper reviews the articles which were sourced from Scopus and the Web of Science database, published between 1980 and 2022. The PRISMA model led to the inclusion of 86 articles for the review. Analysis revealed that anchoring bias, loss aversion, and herding bias have been studied extensively. On the other hand, biases like gambler’s fallacy, familiarity bias, framing bias, home bias, confirmation bias and mental accounting have been less explored. The paper identifies the substantial gaps in the existing studies, giving avenues for future exploration. The key ones are, firstly only a few biases have been studied extensively and many biases are less explored, particularly using primary data. This provides a vast available space for future work. Secondly, studies in developing countries are fewer, which needs to be addressed. Lastly, studies need to explore the interplay of different biases to create a more robust model that can explain the effect of these biases. The paper gives a conceptual understanding of different biases and what factors affect them. Also, it will help policymakers strategize their business and mitigate the negative effects of biases.

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The Influences of Anchoring Effect Toward the Decision Making of People in the Realty Business and Related Industries in China in the Last Two Decades

Sun¹

2022

BCPBM

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In these two decades, realty business and its related industry has been becoming the mainstay industry of economy of China. From the upstream such as the purchasing of house to the downstream such as the material purchase, anchoring effect is used by so many people and its great influence cannot be ignored. This article aims to investigate that how the anchoring effect acts and affect the decision making in the whole industrial chain of real estate and construction industry and its influence in these industries. The article will provide specific examples in real life to show the use of the anchoring effect vividly and points out its limitation in the practical use.

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The Impacts of Task Complexity, Overconfidence, Confirmation Bias, Customer Influence, and Anchoring on Variations in Real Estate Valuations

Cited by 3 publications

References 49 publications

A Literature Review on the Influence of Availability Bias and Overconfidence Bias on Investor Decisions

A Literature Review on the Influence of Availability Bias and Overconfidence Bias on Investor Decisions

Behavioural biases in real estate investment: a literature review and future research agenda

The Influences of Anchoring Effect Toward the Decision Making of People in the Realty Business and Related Industries in China in the Last Two Decades

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