Cognitive Dissonance Under Policy Shock: The Psychological Transmission Mechanism of China's "Houses Are for Living in, Not for Speculation" Policy on Investor Behavior

Haofei Guo

2025

Abstract

With the deepening implementation of China’s "housing for living, not for speculation" policy, investors in the real estate market are increasingly experiencing cognitive dissonance. Against the backdrop of soaring housing prices and resource misallocation in China’s real estate market, this article systematically analyzes the causes and manifestations of such dissonance under this policy framework and proposes optimization strategies. The study identifies policy ambiguity, information distortion, and investor psychological biases—including the disposition effect, loss aversion, and anchoring bias—as primary drivers of cognitive dissonance. To address these issues, solutions are proposed from dual perspectives: refining policy instruments and optimizing investor behavior. Specific recommendations include enhancing policy transparency, improving information disclosure mechanisms, strengthening policy expectation management, and encouraging investors to deepen financial knowledge learning. These measures aim to help investors better adapt to the policy environment, reduce cognitive dissonance, and promote the stable and healthy development of the real estate market.

Paper Citation

in Harvard Style

Guo H. (2025). Cognitive Dissonance Under Policy Shock: The Psychological Transmission Mechanism of China's "Houses Are for Living in, Not for Speculation" Policy on Investor Behavior. In Proceedings of the 2nd International Conference on Engineering Management, Information Technology and Intelligence - Volume 1: EMITI; ISBN 978-989-758-792-4, SciTePress, pages 447-456. DOI: 10.5220/0014361000004718

in Bibtex Style

@conference{emiti25,
author={Haofei Guo},
title={Cognitive Dissonance Under Policy Shock: The Psychological Transmission Mechanism of China's "Houses Are for Living in, Not for Speculation" Policy on Investor Behavior},
booktitle={Proceedings of the 2nd International Conference on Engineering Management, Information Technology and Intelligence - Volume 1: EMITI},
year={2025},
pages={447-456},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0014361000004718},
isbn={978-989-758-792-4},
}

in EndNote Style

TY - CONF

JO - Proceedings of the 2nd International Conference on Engineering Management, Information Technology and Intelligence - Volume 1: EMITI
TI - Cognitive Dissonance Under Policy Shock: The Psychological Transmission Mechanism of China's "Houses Are for Living in, Not for Speculation" Policy on Investor Behavior
SN - 978-989-758-792-4
AU - Guo H.
PY - 2025
SP - 447
EP - 456
DO - 10.5220/0014361000004718
PB - SciTePress