Asymmetric Dominance and Its Impact on Mortgage Default Deficiency Collection Efforts
Dr. Michael J. Seiler, an expert in the field of Real Estate Finance, experienced researcher, editor, author and Cleveland State University alumnus of the Doctoral of Business Administration program will join us in the Monte Ahuja College of Business to speak about his research.
|date:||Tuesday, September 13th, 2016|
|Time:||4:00 PM to 5:00 PM|
|Location:||BU 419 (Dean's Office Conference Room)|
The surge in mortgage default rates during the financial crisis has led to a corresponding dramatic increase in the type and number of firms who are entering the deficiency collection space. As such, we study the methods by which hedge funds and private equity collection firms can more profitably unwind this toxic debt. We employ the theory of Asymmetric Dominance and find support that introducing a similar payment amount (i.e. a "decoy") significantly induces borrowers to change their preference from one that is optimal for them to one that is sub-optimal. We then employ the Left-Most Digit effect in a new manner and demonstrate a statistically significant ability to mitigate the Asymmetric Dominance effect. Finally, we empirically find that Caucasians, males and those of a greater net worth are more adept at avoiding violating the Independence of Irrelevant Alternatives axiom.
Dr. Michael J. Seiler is currently the K. Dane Brooksher Endowed Chair/Professor of Real Estate and Finance at The College of William & Mary. Dr. Seiler was the former Chief Economist at the hedge fund Palex Capital. Internationally-recognized as a behavioral real estate researcher whose studies have been cited in the Wall Street Journal, New York Times, LA Times and theWashington Post, he has published over 150 research students, written several books and currently serves as the editor of Real Estate Finance and co-editor of the Journal of Real Estate Literature.
Dr. Seiler received the William N. Kinnard Young Scholar Award, a national recognition for making significant contributions in his field. More recently, his work on strategic mortgage default and foreclosure contagion was awarded the Governor's Technology Award in the area of Modeling & Simulation and in 2015, Dr. Seiler was ranked #1 out of 883 authors in the Real Estate Academic Leadership (REAL) Author Rankings.
Dr. Seiler is also the past President of the American Real Estate Society as well as a Cleveland State University alumnus and former student of one of the founders of the Paul J. Everson Real Estate Center, Dr. Webb.
All are welcome to attend! If you are not a student, simply place "alumni", "faculty" or "working professional" in the Degree/Major RSVP form below.