FUNDAMENTAL AND BEHAVIORAL ARGUMENTS FOR PRICE DISCOUNTING BY DEVELOPERS

Mikhailov Dmitry Vladimirovich

Recently, there have been noticeable changes in the flow of scientific work on the residential real estate market: both researchers and practitioners are increasingly aware of the influence of psychological effects. In the segment of observational studies, the authors note a shortage of behavioral studies in national markets. This study fills this gap in relation to the Russian residential real estate market, which has not been affected by such studies. His research hypotheses concern the presence of behavioral factors, their quantitative assessment, comparison with fundamental indicators and comparison with quantitative assessments of previous authors. The study was conducted on panel data using a linear fixed effect model. The size of the effects on domestic regional markets of the phenomena of loss aversion and reference dependence is comparable to those in foreign markets and amounts to a fraction of a percent. It has been established that the effects of behavioral aspects in influencing market parameters are of the same order as the indicators of the regional economy, which dictates the need to take them into account when making decisions. This confirms our hypotheses. The work has both scientific and applied significance. The novelty of the work lies in the combination of different behavioral phenomena in one model, as well as in the development of a new design that avoids imperfect prediction of reference points.

Keywords:real estate, behavioral aspects, loss aversion, anchoring, fixed effect panel data model, pricing, developers, fundamental factors, discount