Analysis of Causes of China's Real Estate Price Fluctuation and Policy Suggestions based on Behavioral Economics Theory

DOI

10.2991/ssmi-19.2019.80How to use a DOI?

Keywords

Real estate price fluctuations; Behavioral economics; Herd effect; Attribution theory.

Abstract

In recent years, China's real estate industry has developed rapidly. With the development of the real estate industry, housing prices in various places have also risen rapidly. The level of house prices is not only related to people's livelihood, but also affects the stable development of society. Based on the perspective of behavioral economics, this article analyzes through the "herd effect", contextual attribution theory, "reference point effect" and cognitive dissonance theory that the reasons for the continuous rise in China's real estate prices are, the psychological activities and behaviors of consumers and investors are irrational, and irrational behaviors have caused the continuous rise in real estate prices. At the same time, this article provides relevant suggestions and opinions for individuals, businesses, and governments, with a view to curbing the livelihood problems caused by rising house prices, while ensuring the stable development of the economy and society.

Copyright

© 2019, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Lizhong Gao
PY  - 2019/12
DA  - 2019/12
TI  - Analysis of Causes of China's Real Estate Price Fluctuation and Policy Suggestions based on Behavioral Economics Theory
BT  - Proceedings of the 2nd International Symposium on Social Science and Management Innovation (SSMI 2019)
PB  - Atlantis Press
SP  - 322
EP  - 325
SN  - 2352-5398
UR  - https://doi.org/10.2991/ssmi-19.2019.80
DO  - 10.2991/ssmi-19.2019.80
ID  - Gao2019/12
ER  -