Endowment Effect and Housing Markets

Mateusz Tomal is an assistant professor in the Department of Real Estate and Investment Economics at the Krakow University of Economics. His research interests include housing markets, real estate economics, behavioural economics, econometric modelling, spatial analysis, and local government efficiency.

• Introduction1. The endowment effect and housing studies: A review Chapter overview 1.1. The essence of the endowment effect1.1.1. The endowment effect definition1.1.2. The origins of the WTA-WTP gap1.1.3. Measurement of the WTA-WTP gap1.2. Literature review1.2.1. The method1.2.2. Main findings from endowment effect studies: the exchange paradigm1.2.3. Main findings from endowment effect studies: the valuation paradigm1.2.4. Lessons learned and research gaps1.3. SummaryNotesReferences2. Endowment effects in housing markets: Theoretical groundsChapter overview2.1. The essence of the housing market2.1.1. Housing goods and the housing market2.1.2. Demand and supply for housing2.1.3. Market equilibrium for heterogeneous housing goods2.2. A conceptual model of endowment effects across sales and rental housing markets2.2.1. The role of reference points 2.2.2. Endowment effects across housing markets in theory2.2.3. Additional considerations2.3. SummaryNotesReferences3. Endowment effects and the Polish housing market: A case study Chapter overview3.1. Characteristics of the Polish housing market3.1.1. Housing statistics3.1.2. Behavioural biases: A review3.2. Endowment effect identification: Research results3.2.1. Hypothesis tested3.2.2. Experiment design3.2.3. Econometric framework3.2.4. Results and discussion3.3. SummaryNotesReferencesConclusions