Faculty News

In a joint blog post, Professors Theresa Kuchler and Johannes Stroebel share their research findings on how social networks influence home-buying decisions

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Excerpt from LSE Business Review -- "More generally, our results highlight that individuals’ investment decisions are not made in a social vacuum. What we hear from our friends affects how attractive we perceive an asset to be, even if the experience of those friends arguably does not contain a lot of information that is relevant for the true valuation of the asset. This runs counter to the assumptions in many of our models meant to study the economy. On the flip side, this evidence might help us understand how the passing-on of optimism about the valuation of certain assets might lead to price bubbles in both the housing market and in the stock market."

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