Do Sunk Costs Affect Prices in the Housing Market?

The authors are grateful to Zillow Inc. for providing data through their Transaction and Assessment Database (ZTRAX). The authors also thank two anonymous referees, Tomasz Piskorski (the editor), Renee Adams, Sumit Agarwal, Brent Ambrose (discussant), Kentaro Asai, Michael Bourdeau-Brien (discussant), Stephen Dimmock, Serdar Dinc, Hyunsoo Doh, Radha Gopalan, Michael LaCour-Little (discussant), Zack Liu, Angiew Low, Ron Masulis, Kevin Park (discussant), Paul Povel, Rik Sen, Johan Sulaeman, Qifei Zhu, and seminar participants at the SFS Cavalcade 2019, AREUEA 2019 Annual Meetings, MFA 2018 Annual Meeting, FMA 2018 Annual Meeting, Australian National University, Nanyang Technological University, National University of Singapore, Louisiana State University, University of Houston, and the University of New South Wales for their helpful comments and discussions on issues examined in the paper. All remaining errors are our responsibility.