Skip to Main content Skip to Navigation

Cognitive and Emotional Bias in Real Estate Investment

Abstract : The main objective of this thesis is to analyse how cognitive and emotional biases affect investor decisions when buying or selling office buildings. To meet this aim, this research embarks on a qualitative research. Semi-structured interviews permit to detect and analyse the most important biases that appear in the transactions. Among the different biases discovered, the "base-rate fallacy" was selected. This bias may appear before the acquisition when investors evaluate the expected performance of a building. A quantitative analysis follows to develop a scale that tries to measure the effect of the bias. The results showed that uncertainty leads some investors to assume that the yield they will obtain at the end of their investment will be equal to that of the initial yield. In other words, some investors believe that market conditions will remain the same as today.
Document type :
Complete list of metadatas

Cited literature [255 references]  Display  Hide  Download
Contributor : Abes Star :  Contact
Submitted on : Monday, March 11, 2019 - 5:30:11 PM
Last modification on : Wednesday, October 14, 2020 - 4:12:40 AM
Long-term archiving on: : Wednesday, June 12, 2019 - 6:47:37 PM


Version validated by the jury (STAR)


  • HAL Id : tel-02064265, version 1



Pau Blasi. Cognitive and Emotional Bias in Real Estate Investment. Business administration. Université Paris sciences et lettres, 2018. English. ⟨NNT : 2018PSLED041⟩. ⟨tel-02064265⟩



Record views


Files downloads