%0 Conference Paper %B 22nd Annual European Real Estate Society Conference %D 2015 %T Behavioural biases among real estate investment decision makers: Has anyone seen my neo-cortex? I'm sure I left it here somewhere. %A Ryan, Stephen %A Matthew Richardson %K Anchoring %K Framing %K Herding %K Loss aversion %K Over-Confidence %X
Purpose – To examine whether investors in commercial real estate exhibit some important behavioural biases, namely: anchoring, herding, framing/nudging, loss aversion and over-confidence. If so, are there steps that investors and their agents ( fund managers and advisors) could take (a) to temper the effects of their own biases and (b) to exploit the presence of such biases in other market participants?
Design/methodology/approach – Analysis of historic data sources at asset and market levels and over different time periods, with focus on identifying the specific biases listed above, singly and in combination
Findings – Understanding of behavioural bias merits greater attention.
Research limitations/implications – Reliance on inferences from historic data
Practical implications – May help develop clearer understanding of market drivers and improved decision-making for market participants.
Originality/value – New research within the real estate industry that could help investors understand the highly cyclical nature of commercial real estate investment markets
Keywords: behavioural biases – anchoring – herding – framing - loss aversion – over-confidence
Article Classification: Viewpoint
%B 22nd Annual European Real Estate Society Conference %S ERES: Conference %C Istanbul, Turkey %8 07/2015 %G eng %! Conference 2015 %& Real Estate Finance & Investment %R 10.15396/eres2015_105