An Empirical Investigation of Framing Effects in Negotiations: A Study of Single-Family Home Sales

摘要

This paper integrates Prospect Theory and the concept of framingin a study of consumer negotiated pricing in a real estate context.Building on previously conducted experimental designs, a fieldsurvey indicated that home sellers using sales price as a referencepoint display greater willingness to make concessions than thosewho use equity as their reference point. Further, the third-partyinfluence of the realtor was shown to alter Prospect Theory predic-tions so that even equity-based sellers became concessionary.