TY  - BOOK
AU  - Mohamed,Rayman
TI  - The psychology of residential developers: lessons from behavioral economics and additional explanations for satisficing
SN  - 0739456X
AV  - NA9000 JOU 
PY  - 2006///
CY  - Thousand Oaks
PB  - ACSP
KW  - Developers
KW  - Behavioral economics
KW  - Narrow bracketing
N2  - Researchers have repeatedly observed satisficing by residential developers. The phenomenon has been attributed to their bounded rationality. In response, policy makers have designed policies that reduce risks to assist developers in overcoming bounds on their rationality. However, after decades of such policies, there is little evidence that developers have stopped satisficing. This article argues that bounded rationality is an insufficient explanation for satisficing by small developers. Lessons from behavioral economics suggest additional reasons for satisficing by developers. Satisficing is common because developers bracket projects one at a time, bracket each investment decision in isolation of others, create nonfungible investment accounts, establish self-imposed liquidity constraints, and temporally space projects. Policies that group risks to developers are likely to be the most effective. However, additional land-market-specific research is required to design policies that address these psychological traits. Academicians also need to design better survey instruments to investigate developer decision making
UR  - https://doi.org/10.1177/0739456X05282352
ER  -