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Anchor effects in appraisals : Does educational background matter?

Palm, Peter and Bengtsson, Ingemar LU orcid (2026) In Journal of European Real Estate Research p.1-13
Abstract (Swedish)
Purpose
This study investigates the anchoring effect in property valuation among students from different educational backgrounds, aiming to determine whether an engineering education mitigates cognitive bias compared to a social science education.

Design/methodology/approach
An experimental design was implemented during the final examinations in property valuation courses at two Swedish universities. Students from three educational programs – civil engineering in surveying, real estate brokerage, and property management – were randomly assigned either a low or high anchor value and tasked with appraising a property using the comparable sales method. Statistical analyses, including ANOVA and Scheffé’s multiple comparison... (More)
Purpose
This study investigates the anchoring effect in property valuation among students from different educational backgrounds, aiming to determine whether an engineering education mitigates cognitive bias compared to a social science education.

Design/methodology/approach
An experimental design was implemented during the final examinations in property valuation courses at two Swedish universities. Students from three educational programs – civil engineering in surveying, real estate brokerage, and property management – were randomly assigned either a low or high anchor value and tasked with appraising a property using the comparable sales method. Statistical analyses, including ANOVA and Scheffé’s multiple comparison tests, were conducted to assess the significance of anchoring effects across groups.

Findings
The results confirm a statistically significant anchoring effect among students with a social science background, while no significant effect was found among engineering students. These findings support the hypothesis that engineering education, with its emphasis on model-driven thinking, reduces vulnerability to anchoring bias.

Practical implications
The study highlights the importance of educational framing in valuation training. It suggests that incorporating model-thinking and quantitative reasoning into curricula may help mitigate cognitive biases in professional practice.

Originality/value
By comparing students from distinct educational traditions within a controlled experimental setting, this study contributes novel insights into how cognitive biases manifest in property valuation and how educational background influences susceptibility to anchoring. (Less)
Please use this url to cite or link to this publication:
author
and
organization
publishing date
type
Contribution to journal
publication status
epub
subject
keywords
Experiment, Valuation, Anchoring
in
Journal of European Real Estate Research
pages
13 pages
publisher
Emerald Group Publishing Limited
ISSN
1753-9277
DOI
10.1108/JERER-10-2025-0082
language
English
LU publication?
yes
id
6fd4ede2-9b17-4439-96c3-259f656ea8cc
date added to LUP
2026-04-24 10:48:13
date last changed
2026-05-04 11:08:13
@article{6fd4ede2-9b17-4439-96c3-259f656ea8cc,
  abstract     = {{Purpose<br/>This study investigates the anchoring effect in property valuation among students from different educational backgrounds, aiming to determine whether an engineering education mitigates cognitive bias compared to a social science education.<br/><br/>Design/methodology/approach<br/>An experimental design was implemented during the final examinations in property valuation courses at two Swedish universities. Students from three educational programs – civil engineering in surveying, real estate brokerage, and property management – were randomly assigned either a low or high anchor value and tasked with appraising a property using the comparable sales method. Statistical analyses, including ANOVA and Scheffé’s multiple comparison tests, were conducted to assess the significance of anchoring effects across groups.<br/><br/>Findings<br/>The results confirm a statistically significant anchoring effect among students with a social science background, while no significant effect was found among engineering students. These findings support the hypothesis that engineering education, with its emphasis on model-driven thinking, reduces vulnerability to anchoring bias.<br/><br/>Practical implications<br/>The study highlights the importance of educational framing in valuation training. It suggests that incorporating model-thinking and quantitative reasoning into curricula may help mitigate cognitive biases in professional practice.<br/><br/>Originality/value<br/>By comparing students from distinct educational traditions within a controlled experimental setting, this study contributes novel insights into how cognitive biases manifest in property valuation and how educational background influences susceptibility to anchoring.}},
  author       = {{Palm, Peter and Bengtsson, Ingemar}},
  issn         = {{1753-9277}},
  keywords     = {{Experiment; Valuation; Anchoring}},
  language     = {{eng}},
  month        = {{04}},
  pages        = {{1--13}},
  publisher    = {{Emerald Group Publishing Limited}},
  series       = {{Journal of European Real Estate Research}},
  title        = {{Anchor effects in appraisals : Does educational background matter?}},
  url          = {{http://dx.doi.org/10.1108/JERER-10-2025-0082}},
  doi          = {{10.1108/JERER-10-2025-0082}},
  year         = {{2026}},
}