Loss Aversion of the Condominium Market in Seoul

• 영문명: Loss Aversion of the Condominium Market in Seoul
• 발행기관: 국제융합경영학회
• 저자명: 고미애(Miae KO) 김재태(Jaetae Kim)
• 간행물 정보: 『융합경영연구』Vol.12 No.2, 1~10쪽, 전체 10쪽
• 주제분류: 경제경영 > 경영학
• 파일형태: PDF
• 발행일자: 2024.04.30

영문 초록

Purpose: This study conducted an empirical study to estimate the loss aversion rate of individual investors in the Seoul condominium market. Research design, data and methodology: A survey was conducted with Seoul residents ranging from 30’s to 60’s with various backgrounds. Descriptive statistical analysis and a paired sample t-test were conducted using SPSS 27.0 statistical package. Results: The results of the t-test showed that Seoul residents are indeed more sensitive to loss than gains, as pointed out in various researches related to behavioral economics. Also, the loss aversion rate associated with KRW 50 million risk was found to be 2.14. Finally, the same question was asked with KRW 100 million risk, doubled associated risk of previous question, using the same scenario, and it’s been verified that the loss aversion rate increases as the associated risk or stake increases. The loss aversion rate with double risk is 2.26 which is about 5% higher than the one with KRW 50 million risk. Conclusions: This study can help many groups of people in society who need to establish rewards and punishment policies within any organization. In particular, incorporating human cognitive biases, such as loss aversion can help the South Korean government shape more effective reward and punishment policies when building rewards and punishments using taxes.

목차

1. Introduction

2. Literature Review

3. Research Design

4. Empirical Analysis

5. Conclusion

References

키워드

Loss aversion Behavioral economics Experimental economics Behavioral real estate Behavioral decision making Investors behaviors