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Using Experimental and Neurological Data to Gain a Deeper Understanding of Realization Utility Theory
Author(s) -
Gibson Scott,
Seiler Michael J.,
Walden Eric
Publication year - 2016
Publication title -
real estate economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.064
H-Index - 61
eISSN - 1540-6229
pISSN - 1080-8620
DOI - 10.1111/1540-6229.12164
Subject(s) - realization (probability) , premise , real estate , economics , real estate investment trust , field (mathematics) , financial economics , microeconomics , finance , philosophy , linguistics , statistics , mathematics , pure mathematics
Starting with the premise that realization utility theory helps explain trading behavior, this study combines a carefully crafted experimental design with functional magnetic resonance imaging technology to offer a more inclusive examination of factors that affect REIT trading behavior beyond whether a REIT is simply trading up or down. We add to the nascent field of neurological real estate by finding that local gains/loss domains are more relevant than are global gain/loss considerations, financial skewness is a significant determinant of trading behavior, and that performance inside the REIT market influences how hard subjects think when performing tasks outside the market.