Replication data for: Memory and Reference Prices: An Application to Rental Choice
Principal Investigator(s): View help for Principal Investigator(s) Pedro Bordalo; Nicola Gennaioli; Andrei Shleifer
Version: View help for Version V1
| Name | File Type | Size | Last Modified |
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| code_aerpp | 12/07/2019 03:40:PM | ||
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text/plain | 14.6 KB | 12/07/2019 10:40:AM |
Project Citation:
Bordalo, Pedro, Gennaioli, Nicola, and Shleifer, Andrei. Replication data for: Memory and Reference Prices: An Application to Rental Choice. Nashville, TN: American Economic Association [publisher], 2019. Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2019-12-07. https://doi.org/10.3886/E116474V1
Project Description
Summary:
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Loewenstein and Simonsohn (2006) found that movers across US cities anchor their rental choices to rents in the city of origin, but subsequently converge to comparable local households. We explain this finding using the authors' (2019) model of memory and attention. Rents in the destination city cue recall of "normal" rents in the city of origin, making the former surprisingly high or low, causing movers to under- or overspend, respectively. Over time, experience with new city rents allows the memory database to adapt, and the effect fades away. The model yields two new predictions, for which we find supportive evidence.
Scope of Project
JEL Classification:
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D91 Micro-Based Behavioral Economics: Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
R21 Urban, Rural, Regional, Real Estate, and Transportation Economics: Housing Demand
R23 Urban, Rural, Regional, Real Estate, and Transportation Economics: Regional Migration; Regional Labor Markets; Population; Neighborhood Characteristics
D91 Micro-Based Behavioral Economics: Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
R21 Urban, Rural, Regional, Real Estate, and Transportation Economics: Housing Demand
R23 Urban, Rural, Regional, Real Estate, and Transportation Economics: Regional Migration; Regional Labor Markets; Population; Neighborhood Characteristics
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