This paper integrates Prospect Theory and the concept of framing in a study of consumer negotiated pricing in a real estate context. Building on previously conducted experimental designs, a field survey indicated that home sellers using sales price as a reference point display greater willingness to make concessions than those who use equity as their reference point. Further, the third-party influence of the realtor was shown to alter Prospect Theory predictions so that even equity-based sellers became concessionary.
ASJC Scopus subject areas
- Applied Psychology