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Resellers set disproportionately larger prices when prior prices move from just below to at/above these thresholds, producing lower realized outcomes for those priced just under the rounds. Market forces partially reduce the bias, while valuator experience appears to moderate it, and housing and used-car experiments replicate the mechanism.",{"@graph":14,"@context":73},[15,34,56],{"@type":16,"itemListElement":17},"BreadcrumbList",[18,23,27,31],{"item":19,"name":20,"@type":21,"position":22},"https://docshare.wps.com","Home","ListItem",1,{"item":24,"name":25,"@type":21,"position":26},"https://docshare.wps.com/template/","Template",2,{"item":28,"name":29,"@type":21,"position":30},"https://docshare.wps.com/template/general/","General",3,{"item":32,"name":10,"@type":21,"position":33},"https://docshare.wps.com/template/anchoring-on-historical-round-number-reference-points-evidence-from-durable-goods-resale-prices/569486/",4,{"url":32,"name":10,"@type":35,"image":36,"author":41,"headline":10,"publisher":44,"fileFormat":47,"inLanguage":8,"description":12,"dateModified":48,"datePublished":49,"encodingFormat":47,"isAccessibleForFree":50,"interactionStatistic":51},"DigitalDocument",{"url":37,"@type":38,"width":39,"height":40},"https://docshare.wps.com/thumbnails/anchoring-on-historical-round-number-reference-points-evidence-from-durable-goods-resale-prices/569486.png","ImageObject",442,249,{"name":42,"@type":43},"RuangKosong","Person",{"url":19,"name":45,"@type":46},"DocShare","Organization","application/pdf","2026-10-27","2026-10-13",true,{"@type":52,"interactionType":53,"userInteractionCount":55},"InteractionCounter",{"@type":54},"ViewAction",7,{"@type":57,"mainEntity":58},"FAQPage",[59,65,69],{"name":60,"@type":61,"acceptedAnswer":62},"What does the paper investigate about resale pricing?","Question",{"text":63,"@type":64},"It investigates how people price durable goods resale in systematically biased ways, focusing on how prior sales prices influence later valuations.","Answer",{"name":66,"@type":61,"acceptedAnswer":67},"How do round-number reference points affect pricing?",{"text":68,"@type":64},"Anchoring is discontinuous at psychologically salient round-number thresholds, creating qualitative differences in how people perceive values below versus at/above the reference point.",{"name":70,"@type":61,"acceptedAnswer":71},"Do market forces or experience reduce the bias?",{"text":72,"@type":64},"Market forces only partially attenuate the bias, and valuator experience appears to play a moderating role; experimental housing and used-car evidence supports the mechanism and partial attenuation.","https://schema.org",{"og:url":32,"og:type":75,"og:title":10,"og:site_name":45,"og:description":12},"article",{"robots":77,"canonical":32},"index,follow",{"doc_id":79,"site_id":7},569486,1792171430,{"code":4,"msg":82,"data":83},"success",[84,89,94,99,104,109,114,119,124],{"id":85,"doc_module":22,"doc_module_name":25,"category_name":86,"show_sort_weight":87,"slug":88},11,"Presentations",90,"presentations",{"id":90,"doc_module":22,"doc_module_name":25,"category_name":91,"show_sort_weight":92,"slug":93},12,"Resumes",80,"resumes",{"id":95,"doc_module":22,"doc_module_name":25,"category_name":96,"show_sort_weight":97,"slug":98},14,"Invoices",70,"invoices",{"id":100,"doc_module":22,"doc_module_name":25,"category_name":101,"show_sort_weight":102,"slug":103},15,"Posters",60,"posters",{"id":105,"doc_module":22,"doc_module_name":25,"category_name":106,"show_sort_weight":107,"slug":108},16,"Social Media",50,"social-media",{"id":110,"doc_module":22,"doc_module_name":25,"category_name":111,"show_sort_weight":112,"slug":113},17,"Forms",40,"forms",{"id":115,"doc_module":22,"doc_module_name":25,"category_name":116,"show_sort_weight":117,"slug":118},18,"Letters",30,"letters",{"id":120,"doc_module":22,"doc_module_name":25,"category_name":121,"show_sort_weight":122,"slug":123},21,"Paper Templates",5,"papers-templates",{"id":125,"doc_module":22,"doc_module_name":25,"category_name":29,"show_sort_weight":4,"slug":126},158,"general-158",{"code":4,"msg":82,"data":128},{"doc_id":79,"user_id":129,"nickname":42,"user_avatar":130,"doc_module":22,"category_id":125,"category_name":29,"doc_title":10,"doc_description":12,"doc_content":131,"file_id":132,"file_url":133,"file_type":134,"file_size":135,"view_count":55,"is_deleted":4,"is_public":22,"is_downloadable":22,"audit_status":22,"page_count":136,"language":137,"language_code":8,"site_id":7,"html_lang":8,"table_of_contents":138,"faqs":139,"seo_title":140,"seo_description":12,"update_tm":141,"read_time":142},962090883219,"https://ap-avatar.wpscdn.com/davatar_276721f389ce27ea32af1340a28f341c","Anchoring on Historical Round Number Reference Points: Evidence  \nfrom Durable Goods Resale Prices  \nForthcoming in Organization Science  \nScott S. Wiltermuth* Timothy Gubler*  \nUniversity of Southern California Brigham Young University  \nLamar Pierce  \nWashington University in St. Louis  \nAugust 17th, 2022  \nAcknowledgements: This paper benefited from feedback received at multiple conferences and from many colleagues including at the authors’ home institutions. This project was supported by the USC Marshall School of Business Behavioral Lab. We thank all those who shared thoughts that improved this paper. We also particularly thank Andrew Knight, Alex Rees-Jones, and the Organization Science review team for their helpful comments.  \n*Denotes authors contributed equally.  \nABSTRACT  \nThis paper examines how people price the resale of durable goods in systematically biased ways. We show across four studies that the anchoring effect of durable goods’ prior sales prices on subsequent valuationsis discontinuous at psychologically-salient round number reference points (e.g., $10,000 increments) because these numbers create qualitative differences in how people perceive values below them vs. values at/above them. Resellers set disproportionately larger subsequent prices when previous prices move from just below round-number thresholds (e.g., $349,000) to those at or just above these thresholds (e.g.,$351,000) . The findings show that buyers who pay a price just below a round number therefore may sacrifice money because they receive disproportionately less when reselling the good. Market forces only partially attenuate this pricing bias, but valuator experience seems to play moderating role. Archival data shows that home buyers who previously paid just under a $10,000 reference point subsequently listed their homes for about 1.8 percent (over $3700) less on average than did buyers selling comparable homes who previously paid at or above a round number threshold. This drop is observable controlling for home characteristics and the general relationship between previous and current prices. Three experimental studies looking at housing and used car markets replicate these findings, highlight the mechanism, and increase confidence in causality. Market mechanisms and the negotiation process attenuate discontinuities by about 30%, but lower initial listing prices persist to final sales prices. We find additional weak evidence suggesting valuator experience may attenuate intergenerational pricing bias.  \nKeywords: Anchoring, Experience, Reference Points, Real Estate, Negotiations  \n1. INTRODUCTION  \nPeople often buy durable goods that they will end up selling later. People resell real estate, vehicles, heavy machinery, electronics, luxury clothing, art, and more, creating large and growing resale markets with dedicated platforms, firms, and other organizations (e.g., Bain and Company 2018, U.S. Department of Housing and Urban Development, 2021). In many of these markets, people know (or can reliably estimate) the original sale price of the good. People buying and selling real estate can access previous prices through their agents or through the Multiple Listing System. Similarly, people looking to buy or sell used vehicles can make reasonable estimations by looking to the original manufacturers’ suggested retail prices (MSRP)  \nfor those vehicles.  \nResearchers have established that these previous prices can influence the prices at which people subsequently list those goods (e.g., Bucchianeri and Minson 2013, Diekmann et al., 1996; Einiö et al., 2008; Janiszewski & Uy 2008) . In this paper we argue that our collective understanding of how people use information about past sales to set prices is incomplete in an important way. We propose specifically that people can better understand and predict the relationship between past prices and current prices if they account for the fact that round numbers, such as $10,000, often serve as cognitively-","cbCaibScaTLRPLX7","https://ap.wps.com/l/cbCaibScaTLRPLX7","pdf",1919269,72,"English","# Abstract\n# Introduction\n## Round numbers as cognitively accessible reference points\n## Charm pricing and demand effects\n## Core research questions and predictions","[{\"question\":\"What does the paper investigate about resale pricing?\",\"answer\":\"It investigates how people price durable goods resale in systematically biased ways, focusing on how prior sales prices influence later valuations.\"},{\"question\":\"How do round-number reference points affect pricing?\",\"answer\":\"Anchoring is discontinuous at psychologically salient round-number thresholds, creating qualitative differences in how people perceive values below versus at/above the reference point.\"},{\"question\":\"Do market forces or experience reduce the bias?\",\"answer\":\"Market forces only partially attenuate the bias, and valuator experience appears to play a moderating role; experimental housing and used-car evidence supports the mechanism and partial attenuation.\"}]","Anchoring on Historical Round Number Reference Points - Evidence from Durable Goods Resale Prices | PDF",1791876056,25]