An empirical investigation of framing effects in negotiations: A study of single-family home sales

Carl L. Witte, Marko Grünhagen, James W. Gentry

Research output: Contribution to journalArticle

5 Citations (Scopus)

Abstract

This paper integrates Prospect Theory and the concept of framing in a study of consumer negotiated pricing in a real estate context. Building on previously conducted experimental designs, a field survey indicated that home sellers using sales price as a reference point display greater willingness to make concessions than those who use equity as their reference point. Further, the third-party influence of the realtor was shown to alter Prospect Theory predictions so that even equity-based sellers became concessionary.

Original languageEnglish (US)
Pages (from-to)465-484
Number of pages20
JournalPsychology and Marketing
Volume25
Issue number5
DOIs
StatePublished - May 1 2008

Fingerprint

Negotiating
Research Design
Costs and Cost Analysis
Empirical investigation
Reference point
Framing effects
Seller
Prospect theory
Equity
Surveys and Questionnaires
Experimental design
Pricing
Willingness
Prediction
Real estate
Concession

ASJC Scopus subject areas

  • Applied Psychology
  • Marketing

Cite this

An empirical investigation of framing effects in negotiations : A study of single-family home sales. / Witte, Carl L.; Grünhagen, Marko; Gentry, James W.

In: Psychology and Marketing, Vol. 25, No. 5, 01.05.2008, p. 465-484.

Research output: Contribution to journalArticle

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