Experts, amateurs, and real estate: An anchoring-and-adjustment perspective on property pricing decisions
Northcraft and Neale took anchoring out of the laboratory and into a property market. Estate agents and student participants toured a house and were given a full information package that included a listing price, with the listing price varied between groups, and then gave their own valuations. The valuations followed the listing price. The finding that matters for this vault is the comparison: the agents, working in their own professional domain, anchored less than the students and were not protected, and the agents were reported as denying that the listing price had influenced their judgment. The anchoring indices usually quoted for this study, around forty-one per cent for agents against forty-eight for students, are reported in Kahneman's Thinking, Fast and Slow. This publication has not read the original paper and says so wherever the figures appear.
Northcraft and Neale took anchoring out of the laboratory and into a property market. Estate agents and student participants toured a house and were given a full information package that included a listing price, with the listing price varied between groups, and then gave their own valuations. The valuations followed the listing price. The finding that matters for this vault is the comparison: the agents, working in their own professional domain, anchored less than the students and were not protected, and the agents were reported as denying that the listing price had influenced their judgment. The anchoring indices usually quoted for this study, around forty-one per cent for agents against forty-eight for students, are reported in Kahneman's Thinking, Fast and Slow. This publication has not read the original paper and says so wherever the figures appear.
Written from the public record for the paper.
What our sources record
Reproduced as it was written when this source was checked, figures and all.
doi:10.1016/0749-5978(87)90046-x. The 41 per cent and 48 per cent anchoring indices are as reported in Kahneman's Thinking, Fast and Slow; this publication has not read the original paper and says so on the page.
Where we use it
- Why the First Price You See Decides What You Pay, Why We Act
Reliability of this reference
The link below was matched against the publisher's record on title, first author and year, and all three agree.
The source
https://doi.org/10.1016/0749-5978(87)90046-x90046-x)
DOI: 10.1016/0749-5978(87)90046-x