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Introduction

Households making housing decisions deviate systematically from textbook-rational behaviour. They are reference-dependent (anchored to the price they paid, even when current prices have moved); they exhibit loss aversion (refusing to sell at perceived losses, distorting market liquidity); they over-extrapolate recent trends, mis-time entry and exit. The behavioural-economics framing carries direct implications for housing policy: nudge-style interventions can adjust margins where the canonical rational-actor model predicts no response.

My work in this line spans reference dependence in UK and Chinese housing markets, loss aversion among developers timing project sales, and the behavioural foundations of homeownership across generations.

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