As Yale economist Robert Shiller has shown, the best explanation of the real estate bubble greatly overlaps with the best explanation of the stock market bubble of the late 1990s: In both cases, people were influenced by a process of social contagion. This belief produced wildly unrealistic projections, with palpable consequences for home purchases and mortgage choices.4416 ↱
Nudge
Improving Decisions About Health, Wealth, and Happiness
Richard H. Thaler, Cass R. Sunstein