on topic: norm assymetry

[Arraya]

http://www.hulu.com/watch/120801/the-colbert-report-the-word-honor-bound

[briansd1]

The Prospect Theory (utility of gain vs. utility of loss) also applies.

The initial decision to walk is much more psychologically painful than the decision to stay (despite walking being more financially rewarding in the long term. But the long term is too far off to be of utility, right now).

If a homeowners walks, he’s admitted financial loss. He fully realizes the loss of downpayment and the money he’s put into the house so far, including the emotional investment.

But if he stays, there’s always the hope of making it all back. That’s why government tries to encourage people into thinking that help is on way, the economy is growing, prices are recovering, etc…

Hope is a human trait that made our early ancestors walk all the way from Africa to Siberia. Unfortunately they didn’t find more sunshine and fertile lands. But survive in Siberia they did.

Same with gambling in Vegas. That’s also why we pray to God that he may heal our sick child. It’s useless but we do it nonetheless.

[briansd1]

The Prospect Theory (utility of gain vs. utility of loss) also applies.

The initial decision to walk is much more psychologically painful than the decision to stay (despite walking being more financially rewarding in the long term. But the long term is too far off to be of utility, right now).

If a homeowners walks, he’s admitted financial loss. He fully realizes the loss of downpayment and the money he’s put into the house so far, including the emotional investment.

But if he stays, there’s always the hope of making it all back. That’s why government tries to encourage people into thinking that help is on way, the economy is growing, prices are recovering, etc…

Hope is a human trait that made our early ancestors walk all the way from Africa to Siberia. Unfortunately they didn’t find more sunshine and fertile lands. But survive in Siberia they did.

Same with gambling in Vegas. That’s also why we pray to God that he may heal our sick child. It’s useless but we do it nonetheless.

[briansd1]

The Prospect Theory (utility of gain vs. utility of loss) also applies.

The initial decision to walk is much more psychologically painful than the decision to stay (despite walking being more financially rewarding in the long term. But the long term is too far off to be of utility, right now).

If a homeowners walks, he’s admitted financial loss. He fully realizes the loss of downpayment and the money he’s put into the house so far, including the emotional investment.

But if he stays, there’s always the hope of making it all back. That’s why government tries to encourage people into thinking that help is on way, the economy is growing, prices are recovering, etc…

Hope is a human trait that made our early ancestors walk all the way from Africa to Siberia. Unfortunately they didn’t find more sunshine and fertile lands. But survive in Siberia they did.

Same with gambling in Vegas. That’s also why we pray to God that he may heal our sick child. It’s useless but we do it nonetheless.

[briansd1]

The Prospect Theory (utility of gain vs. utility of loss) also applies.

The initial decision to walk is much more psychologically painful than the decision to stay (despite walking being more financially rewarding in the long term. But the long term is too far off to be of utility, right now).

If a homeowners walks, he’s admitted financial loss. He fully realizes the loss of downpayment and the money he’s put into the house so far, including the emotional investment.

But if he stays, there’s always the hope of making it all back. That’s why government tries to encourage people into thinking that help is on way, the economy is growing, prices are recovering, etc…

Hope is a human trait that made our early ancestors walk all the way from Africa to Siberia. Unfortunately they didn’t find more sunshine and fertile lands. But survive in Siberia they did.

Same with gambling in Vegas. That’s also why we pray to God that he may heal our sick child. It’s useless but we do it nonetheless.

[briansd1]

The Prospect Theory (utility of gain vs. utility of loss) also applies.

The initial decision to walk is much more psychologically painful than the decision to stay (despite walking being more financially rewarding in the long term. But the long term is too far off to be of utility, right now).

If a homeowners walks, he’s admitted financial loss. He fully realizes the loss of downpayment and the money he’s put into the house so far, including the emotional investment.

But if he stays, there’s always the hope of making it all back. That’s why government tries to encourage people into thinking that help is on way, the economy is growing, prices are recovering, etc…

Hope is a human trait that made our early ancestors walk all the way from Africa to Siberia. Unfortunately they didn’t find more sunshine and fertile lands. But survive in Siberia they did.

Same with gambling in Vegas. That’s also why we pray to God that he may heal our sick child. It’s useless but we do it nonetheless.

[scaredyclassic]

i go with the prospect theory. in addition it’s a pain to move. but it is definitely painful to lock in a loss…would people really be wealthier if they were completely rational…

[scaredyclassic]

i go with the prospect theory. in addition it’s a pain to move. but it is definitely painful to lock in a loss…would people really be wealthier if they were completely rational…

[scaredyclassic]

i go with the prospect theory. in addition it’s a pain to move. but it is definitely painful to lock in a loss…would people really be wealthier if they were completely rational…

[scaredyclassic]

i go with the prospect theory. in addition it’s a pain to move. but it is definitely painful to lock in a loss…would people really be wealthier if they were completely rational…

[scaredyclassic]

i go with the prospect theory. in addition it’s a pain to move. but it is definitely painful to lock in a loss…would people really be wealthier if they were completely rational…

[Arraya]

CR ran a piece on it as well. I’d say this is another pillar in keeping home prices high, along with GSE support and artificial scarcity imposed by banks. Then again, if people started walking en masse, they just go into the shadow inventory.

http://www.calculatedriskblog.com/2010/01/cre-and-moral-and-social-constraints-to.html
“[P]eople who know someone who defaulted are 82% more likely to declare their intention to do so.” And “as defaults become more common”, there is a “contagion effect that reduces the social stigma associated with default”.

[Arraya]

CR ran a piece on it as well. I’d say this is another pillar in keeping home prices high, along with GSE support and artificial scarcity imposed by banks. Then again, if people started walking en masse, they just go into the shadow inventory.

http://www.calculatedriskblog.com/2010/01/cre-and-moral-and-social-constraints-to.html
“[P]eople who know someone who defaulted are 82% more likely to declare their intention to do so.” And “as defaults become more common”, there is a “contagion effect that reduces the social stigma associated with default”.

[Arraya]

CR ran a piece on it as well. I’d say this is another pillar in keeping home prices high, along with GSE support and artificial scarcity imposed by banks. Then again, if people started walking en masse, they just go into the shadow inventory.

http://www.calculatedriskblog.com/2010/01/cre-and-moral-and-social-constraints-to.html
“[P]eople who know someone who defaulted are 82% more likely to declare their intention to do so.” And “as defaults become more common”, there is a “contagion effect that reduces the social stigma associated with default”.

[Arraya]

CR ran a piece on it as well. I’d say this is another pillar in keeping home prices high, along with GSE support and artificial scarcity imposed by banks. Then again, if people started walking en masse, they just go into the shadow inventory.

http://www.calculatedriskblog.com/2010/01/cre-and-moral-and-social-constraints-to.html
“[P]eople who know someone who defaulted are 82% more likely to declare their intention to do so.” And “as defaults become more common”, there is a “contagion effect that reduces the social stigma associated with default”.

[Author]

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