Replication data for: Memory and Reference Prices: An Application to Rental Choice

Principal Investigator(s): View help for Principal Investigator(s) Pedro Bordalo; Nicola Gennaioli; Andrei Shleifer

Name	File Type	Size	Last Modified
code_aerpp			12/03/2019 12:22:PM
LICENSE.txt	text/plain	14.6 KB	12/03/2019 07:22:AM

Project Citation:

Project Description

Summary: Loewenstein and Simonsohn (2006) found that movers across US cities anchor their rental choices to rents in the city of origin, but subsequently converge to comparable local households. We explain this finding using the authors' (2019) model of memory and attention. Rents in the destination city cue recall of "normal" rents in the city of origin, making the former surprisingly high or low, causing movers to under- or overspend, respectively. Over time, experience with new city rents allows the memory database to adapt, and the effect fades away. The model yields two new predictions, for which we find supportive evidence.

Scope of Project

JEL Classification:
      D91 Micro-Based Behavioral Economics: Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
      R21 Urban, Rural, Regional, Real Estate, and Transportation Economics: Housing Demand
      R23 Urban, Rural, Regional, Real Estate, and Transportation Economics: Regional Migration; Regional Labor Markets; Population; Neighborhood Characteristics

Related Publications

Download this project

Published Versions

V1 [2019-12-03]

Export Metadata

Dublin Core

DDI 2.5

Report a Problem

Found a serious problem with the data, such as disclosure risk or copyrighted content? Let us know.

This material is distributed exactly as received from the data depositor. As of April 2026, depositors are required to submit study materials in accessible formats. ICPSR has not reviewed, checked, or processed this material. For additional information about the study, please contact the investigator(s) directly. If you have questions about the accessibility of materials distributed by ICPSR or require further assistance, please visit ICPSR's Accessibility Center.