Replication data for: Memory and Reference Prices: An Application to Rental Choice

Name: Replication data for: Memory and Reference Prices: An Application to Rental Choice
Published: 2019-05-01
License: This work is licensed under an Other license created by the data depositor. Please refer to the LICENSE file, which should be located alongside the project data and documentation.

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
code_aerpp			12/07/2019 03:40:PM
LICENSE.txt	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: 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:
      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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V1 [2019-12-07]

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This work is licensed under an Other license created by the data depositor. Please refer to the LICENSE file, which should be located alongside the project data and documentation.

This material is distributed exactly as it arrived from the data depositor. ICPSR has not checked or processed this material. Users should consult the investigator(s) if further information is desired.