Yesterday, Wall Street Journal published an article titled "Can Tylenol Ease the Pain of a Home Sale?" in response to a study at the Univeristy of Kentucky. The study "Can Acetaminophen Reduce the Pain of Decision Making?", based on the principle that physical and emotional pain can overlap, has now been connected to the real estate industry. Psychologists, journalists, and real estate professionals are asking the question, could painkillers cause homeowners to reduce their asking price? According to www.scientificdirect.com, "experiments showed that acetaminophen reduced the pain of decision-making, as indicated by lower attitude change that accompanies cognitive dissonance and lower selling prices when selling personal possessions." The study of 95 undergraduate students compared asking prices when the students were asked to sell a mug. The students were asked to study the mug for 30 seconds "to create a sense of attachment," before making an offer, according to WSJ. Students who took acetaminophen asked for about $4.15 to $5.92, while students who took a placebo asked for about $5.55 to $6.27.
Stefanos Chen of WSJ explained that "the results illustrate 'loss aversion'... the thought of losing the mug caused pain, and the acetaminophen helped students who were attached to the mug decide to sell at a lower price." Professor Nathan DeWall of Univeristy of Kentucky stated, "It's the same principle at play when a sentimental homeowner balks at an agent's comparable sales figures and demands a higher price for his home."
It is hard to say without further research whether or not the same results would apply to an item with much higher sense of attachment - such as a home.
What do you think? Leave your comments below!
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