%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