Overcapitalization and cost escalation in housing renovation

New Zealand Economic Papers

Volumn 45, Issue 1-2, 2011, Pages 119-138

  Peng, Ti Ching ^a  

^a NATIONAL DONG HWA UNIVERSITY   (Taiwan)

Author keywords

Behavioural economics; Cost escalation; Housing renovation; Overcapitalization; Psychological factors

Indexed keywords

EID: 79957871498     PISSN: 00779954     EISSN: 19434863     Source Type: Journal    
DOI: 10.1080/00779954.2011.556074     Document Type: Article

References (43)

1. Ainslie, G., & Haslam, N. (2000). Self-control. In G. Loewenstein & J. Elster (Eds.), Choice over time (pp. 177-212). New York: Russell Sage Foundation.
2. Arkes, H., & Blumer, C. (1985). The psychology of sunk cost. Organizational Behavior and Human Decision Processes, 35(1), 124-140.
3. Bikhchandani, S., Hirshleifer, D., & Welch, I. (1992). A theory of fads, fashion, custom, and cultural change as informational cascades. The Journal of Political Economy, 100(5), 992-1026.
4. Box, T. (2005). Next step. The Courier Mail, 17 September, p.16.
5. Brockner, J., Rubin, J., & Lang, E. (1981). Face-saving and entrapment. Journal of Experimental Social Psychology, 17(1), 68-79.
6. Dunlevy, M. (2003). Don't be a building blockhead. The Australian, 23 August, p. 33.
7. Earl, P., & Wicklund, R. (1999). Cognitive dissonance. In P. Earl & S. Kemp (Eds.), The Elgar companion to consumer research and economic psychology (pp. 81-88). Cheltenham: Edward Elgar.
8. Elster, J. (1999). Alchemies of the mind: Rationality and the emotions. Cambridge: Cambridge University Press.
9. Elster, J. (2000). Ulysses unbound: Studies in rationality, precommitment, and constraints. Cambridge: Cambridge University Press.
10. Festinger, L. (1957). A theory of cognitive dissonance. Stanford: Stanford University Press.
11. Fishbein, M., & Ajzen, I. (1975). Belief, attitude, intention and behaviour. Mass: Addison-Wesley Reading.
12. Kahneman, D., Krueger, A., Schkade, D., Schwarz, N., & Stone, A. (2004). A survey method for characterizing daily life experience: The day reconstruction method. Science, 306(3), 1776-1780.
13. Keil, M. (1995). Pulling the plug: Software project management and the problem of project escalation. MIS Quarterly, 19(4), 421-447.
14. Keil, M., Tan, B., Wei, K.-K., Saarinen, T., Tuunainen, V., & Wassenaar, A. (2000). A crosscultural study on escalation of commitment behavior in software project. MIS Quarterly, 24(2), 299-325.
15. Leibenstein, H. (1950). Bandwagon, Snob, and Veblen effects in the theory of consumers' demand. The Quarterly Journal of Economics, 64(2), 183-207.
16. Maslow, A.H. (1968). Toward a psychology of being (2nd edn). New York: D. Van Nostrand Company.
17. Matterson, H. (2002). Home renovation survival tactics-Rates on the rise. The Australian, 9 June, p. 33.
18. May, A. (2005). Planning your perfect home renovation. Crows Nest: Allen & Unwin.
19. Nathanson, S., Brockner, J., Brenner, D., & Samuelson, C. (1982). Toward the reduction of entrapment. Journal of Applied Social Psychology, 12(3), 193-208.
20. Peng, T.-C. (2004). Mainstream versus heterodox perspectives on the dynamics of the Brisbane residential property market, 1998-2003. Master Thesis, The School of Economics, University of Queensland, Brisbane.
21. Phipps, A. (1983). Housing renovation by recent movers into the core neighborhoods of Saskatoon. Canadian Geographer, 27(3), 240-262.
22. Ross, J., & Staw, B. (1986). Expo 86: An escalation prototype. Administrative Science Quarterly, 31, 274-297.
23. Rubin, J., & Brockner, J. (1975). Factors affecting entrapment in waiting situations: The Rosencrantz and Guildenstern effect. Journal of Personality and Social Psychology, 31(1), 1054-1063.
24. Rusbult, C. (1980). Commitment and satisfaction in romantic associations: A test of the investment model. Journal of Experimental Social Psychology, 16(2), 172-186.
25. Singer, A. (1986). When the stakes are high. Accountancy, November, 92-93.
26. Singer, A. (1993). Strategy with sunk costs. Human Systems Management, 12, 97-113.
27. Singer, A. (1999). Escalation of commitment. In P. Earl & S. Kemp (Eds.), The Elgar companion to consumer research and economic psychology (pp. 192-201). Cheltenham: Edward Elgar.
28. Staw, B. (1976). Knee-deep in the big muddy: A study of escalating commitment to a chosen course of action. Organizational Behavior and Human Performance, 16, 27-44.
29. Staw, B. (1981). The escalation of commitment to a course of action. The Academy of Management Review, 6(4), 577-587.
30. Staw, B., & Hoang, H. (1995). Sunk costs in the NBA: Why draft order affects playing time and survival in professional basketball. Administrative Science Quarterly, 40(3), 474-494.
31. Staw, B., & Ross, J. (1987). Behavior in escalation situations: Antecedents, prototypes, and solutions. In B. Staw & L.L. Cummings (Eds.), Research in organizational behaviour (9) (pp. 39-78). Greenwich, CT: JAI Press Inc.
32. Staw, B., & Ross, J. (1989). Understanding behaviour in escalation situations. Science, 246(4927), 216-220.
33. Swan, K. (2007). Home renovations keep pressure on prices. ABC: Inside Business, June 3.
34. Tabachnick, B., & Fidell, L. (2007). Using multivariate statistics (5th edn). Boston: Allyn & Bacon.
35. Tegar, A. (1980). Too much invested to quit. New York: Pergamon.
36. Thaler, R. (1980). Toward a positive theory of consumer choice. Journal of Economic Behavior and Organization, 1, 39-60.
37. Thaler, R., & Shefrin, H. (1981). An economic theory of self-control. The Journal of Political Economy, 89(2), 392-406.
38. Thaler, R., & Sunstein, C. (2008). Nudge: Improving decisions about health, wealth, and happiness. New Haven: Yale University Press.
39. Tierney, J. (2007). Facts prove no match for gossip, it seems. The New York Times, 16 October.
40. Tilbury, A. (2004). Take time to plan before you go ahead. The Courier Mail, 24 July, p. 82.
41. Tversky, A., & Kahneman, D. (1974). Judgment under uncertainty: Heuristics and biases. Science, 185, 1124-1131.
42. Tversky, A., & Kahneman, D. (1981). The framing of decisions and the psychology of choice. Science, 211(4481), 453-458.
43. Whyte, G., Saks, A.M., & Hook, S. (1997). When success breeds failure: The role of selfefficacy in escalating commitment to a losing course of action. Journal of Organizational Behaviour, 18(5), 415-432.