Author(s)

Qi Ruoxi

Corresponding Author

Qi Ruoxi

Abstract

In this paper, the concepts and development process of overconfidence theory and The herding effect theory in behavioral finance, as well as the research and application of these theory by domestic and foreign scholars are briefly introduced.In this paper, the theory are used as reference for analyzing the preference and decision-making of real estate investors in real estate investment behavior, as well as the their relationship with the investment behavior.It is shown that overconfidence and the Herding Effect make the investment of real estate investors have the phenomenon of collective irrationality, emotional, blindness and conformity, which brings great uncertainty to the real estate market.

Keywords

Real estate investment, Overconfidence, behavioural finance, Herd behaviour, Investor sentiment