The finance literature suggests that the Veblen effect (i.e. luxury consumption behavior) could be translated into consumers' behavior with other goods and assets. This study is the first to examine the role that the Veblen effect plays in housing market dynamics, with a focus on spatial and...

The financial economics literature suggests that the possibility of rare events occurring affects asset pricing dynamics. At the same time, the recent finance literature found that investors often pay only limited attention to relevant information in making their investment decisions and they...