{"id":5140,"date":"2026-04-02T10:52:39","date_gmt":"2026-04-02T02:52:39","guid":{"rendered":"http:\/\/www.gssinst.org\/irer\/?p=5140"},"modified":"2026-04-02T10:55:02","modified_gmt":"2026-04-02T02:55:02","slug":"an-innovative-approach-to-identify-latent-overconfidence-and-disposition-effects-in-frictional-real-estate-markets","status":"publish","type":"post","link":"https:\/\/www.gssinst.org\/irer\/2026\/04\/02\/an-innovative-approach-to-identify-latent-overconfidence-and-disposition-effects-in-frictional-real-estate-markets\/","title":{"rendered":"An Innovative Approach to Identify Latent Overconfidence and Disposition Effects in Frictional Real Estate Markets"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"5140\" class=\"elementor elementor-5140\" data-elementor-settings=\"[]\">\n\t\t\t\t\t\t<div class=\"elementor-inner\">\n\t\t\t\t\t\t\t<div class=\"elementor-section-wrap\">\n\t\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-6b084dbc elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"6b084dbc\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t\t\t<div class=\"elementor-row\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-47d15be8\" data-id=\"47d15be8\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-column-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t<div class=\"elementor-widget-wrap\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-73767d13 elementor-widget elementor-widget-text-editor\" data-id=\"73767d13\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<div class=\"elementor-text-editor elementor-clearfix\"><div class=\"article_label\">Article<\/div>\n<p class=\"article_title\">An Innovative Approach to Identify Latent Overconfidence and Disposition Effects in Frictional Real Estate Markets<\/p>\n\n<div>\n<p class=\"title_label_large\">Author<\/p>\n<p class=\"title_label_large\">Start Page \/ End Page<\/p>\n<p class=\"title_label\">Volume<\/p>\n<p class=\"title_label\">Issue Number<\/p>\n<p class=\"title_label\">Year<\/p>\n<p class=\"title_label_large\">Publication<\/p>\n\n<\/div>\n<div>\n\n<!-- Author \/ StartEndPage \/ Volume \/ IssueNumber \/ Year \/ Publication -->\n<p class=\"title_text_large\">Lok Man Michelle Tong<\/p>\n<p class=\"title_text_large\">77 \/ 120<\/p>\n<p class=\"title_text\">29<\/p>\n<p class=\"title_text\">1<\/p>\n<p class=\"title_text\">2026<\/p>\n<p class=\"title_text_large\">International Real Estate Review<\/p>\n\n<\/div>\n<div class=\"empty\"><\/div>\n<p class=\"abstract_label\">Abstract<\/p>\n<p>The operating decisions of investors can be irrational. This research proposes an approach to measure overconfidence bias and the disposition effect based on real estate rental decisions, and disentangle from market friction. Irrational operating decisions transform into impacts on real estate rentable supply responsiveness and market illiquidity. Analyzing US office market data from 2005 to 2019, the empirical findings confirm that the disposition effect significantly impacts supply responsiveness, alongside the effects of overconfidence, regulations and geographical barriers. Friction is the leading cause of market illiquidity, and the level of market illiquidity due to the disposition effect is higher than the overconfidence bias; thus, the disposition effect more frequently occurs.<\/p>\n\n&nbsp;\n\n<!-- PDF DownloadLink -->\n<p class=\"download\"><a href=\"http:\/\/www.gssinst.org\/irer\/wp-content\/uploads\/2026\/04\/vol29_no1_3-MS25072301-Latent-Overconfidence-Disposition-Effects-Tong.pdf\" target=\"_blank\"><strong>View PDF &#8211; https:\/\/doi.org\/10.53383\/100417<\/strong><\/a><\/p>\n\n<div class=\"empty\"><\/div>\n<div><\/div>\n<br>\n<p class=\"abstract_label\">Keywords<\/p>\n<p>Overconfidence, Disposition effect, Friction, Supply responsiveness, Market illiquidity, Commercial real estate<\/p>\n\n<\/div>\n<div><\/div><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>Article An Innovative Approach to Identify Latent Overconfidence and Disposition Effects in Frictional Real Estate Markets Author Start Page \/&hellip;<\/p>\n","protected":false},"author":6,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"article-template.php","format":"standard","meta":[],"categories":[284,285],"tags":[],"_links":{"self":[{"href":"https:\/\/www.gssinst.org\/irer\/wp-json\/wp\/v2\/posts\/5140"}],"collection":[{"href":"https:\/\/www.gssinst.org\/irer\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.gssinst.org\/irer\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.gssinst.org\/irer\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/www.gssinst.org\/irer\/wp-json\/wp\/v2\/comments?post=5140"}],"version-history":[{"count":2,"href":"https:\/\/www.gssinst.org\/irer\/wp-json\/wp\/v2\/posts\/5140\/revisions"}],"predecessor-version":[{"id":5142,"href":"https:\/\/www.gssinst.org\/irer\/wp-json\/wp\/v2\/posts\/5140\/revisions\/5142"}],"wp:attachment":[{"href":"https:\/\/www.gssinst.org\/irer\/wp-json\/wp\/v2\/media?parent=5140"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.gssinst.org\/irer\/wp-json\/wp\/v2\/categories?post=5140"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.gssinst.org\/irer\/wp-json\/wp\/v2\/tags?post=5140"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}