We examine anchoring to the price paid at purchase during an important cycle, 2000-2017. We exploit differences between the actual house price index and one that corrects for loss and gain behavior. Results suggest that anchoring was associated with reductions in observed changes in house prices...

From the perspective of an existing retailer, the optimal size of a cluster of retail activity represents a trade-off between the marginal increases in consumer attraction from another store against the depletion of the customer base caused by an additional competitor. We estimate opening and...

We propose that, in addition to the first price of a repeat pair, sellers also anchor to local fundamentals at the date of the first sale. We redefine an important diagnostic tool for housing cycles by replacing the ratio of house prices to fundamentals with a salient gap: change in market value...

This is the Online Appendix for: Is the Behavior of Sellers with Expected Gains and Losses Relevant to Cycles in House Prices?Appendix 1 provides support for using assessed value to mitigate unobserved quality.Appendix 2 describes the calculation of normalized assessed value (NAV) and summarizes...

Previous literature has found that sellers with purchase price higher than expected sale price (i.e., expected losses) are able to obtain a substantial premium. This literature relies on econometric analysis suggesting that estimated premiums are downwardly biased (i.e., conservative). We show...