An Analysis of House Buyers' Herd Behavior When Price of House at High Level in China

摘要

Supply & demand theory shows that the higher price of a commodity is the less demand of it is. But the status of real estate market is just reverse in Chinese big cities, that is, higher price and more demands of house occur synchronously. Even house buyers' herd behavior has come forth, which conflicts to classical supply & demand theory. By using behavioral economics. The paper attempts to analyze how house buyers' cognition psychology, sentiment psychology, social psychology influence forming of house buyers' reference price and arouse house buyers' herd behavior. And the paper has an inquisition to find out what factors arouse the three psychologies and to affirm the factors' weight because the factors are deep-seated reasons those arouse house buyers' herd behavior when the price of house is at high level in Chinese big cities. It's hoped that the study could accelerate constituting macroscopical policy to effectively control house buyers' herd behavior and let house buyers be more rational gradually in Chinese big cities.