ESRI report in February<\/a> found that people using online bidding platforms to buy homes are far more likely to bid higher and take greater financial risks in buying homes.<\/p>\nWhile the study found there was a perception of \u201cfairness\u201d with online auctions, online bidding platforms saw prices jump by as much as \u20ac16,000.<\/p>\n
The ESRI pointed to theories on \u201cauction fever\u201d and \u201closs aversion\u201d, which suggest that competitive environments drive individuals to try to beat others.<\/p>\n
When asked by reporters about concerns with online bidding, Browne pointed to his previous role as minister of state at the Justice Department.<\/p>\n
\u201cI\u2019d be familiar with a lot of that type of impulse movements from when I was Minister of Justice and over gambling, and would have spent a lot of time speaking with professionals in the area of gambling,\u201d said Browne.<\/p>\n
He added that this \u201cimpulse is quite dangerous\u201d, especially if \u201cthey feel under pressure\u201d.<\/p>\n
He also warned that people could make decisions at \u201cthree in the morning\u201d that they might not make \u201cin the cold light of day\u201d.<\/p>\n
\u201cIt\u2019s not something I\u2019ve looked at,\u201d said Browne, \u201cbut it\u2019s certainly something I will, because it\u2019s a very interesting point around the psychology of what people are doing in those types of situations.\u201d<\/p>\n
When asked to expand on potential similarities between gambling and online bidding for homes, Browne replied: \u201cI wouldn\u2019t know enough to answer that question, to be honest, at the moment.<\/p>\n
\u201cIt\u2019s not something I\u2019ve thought about before.\u201d<\/p>\n
However, he added: \u201cBringing my previous experience to bear, my previous conversations with psychiatrists in the area of mental health, in the area of gambling, I know impulse decision-making, where you\u2019re spending an awful lot of money, and you feel under pressure for all sorts of reasons.<\/p>\n
\u201cThat can be quite dangerous for people.\u201d<\/p>\n
Browne remarked that he would \u201cgo back and talk to some of those psychiatrists to see their view at this type of mechanism, is it dangerous?\u201d<\/p>\n
He added: \u201cInstinctively, I would have concerns. But I need to look into it.\u201d<\/p>\n
Elsewhere, Browne was asked about the potential for the government to \u201ctackle bidding wars\u201d.<\/p>\n
\u201cWhat you want is fairness,\u201d said Browne, \u201cand there should be fairness between the buyer and the seller.\u201d<\/p>\n
He said that at the moment, the \u201csystem favours the seller and puts the buyer in a very difficult situation\u201d.\n<\/p>\n
\nA situation where they have to put an awful lot of trust in people that they don\u2019t really know.<\/p>\n<\/blockquote>\n
While Browne said that the \u201cvast majority of it is done true and honestly\u201d, he also questioned if the \u201cbalance is correct\u201d and remarked that he is \u201cnot so sure it is\u201d.<\/p>\n
\u201cWe\u2019re going to get working on that over the next couple of months to see where that balance is, and should it be pivoted back more towards the purchaser,\u201d said Browne.<\/p>\n
\u201cFairness and transparency are very important around that.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"THE HOUSING MINISTER has said he will \u201clook into\u201d the dangers of \u201cimpulse\u201d buying that could be associated…\n","protected":false},"author":2,"featured_media":677802,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_share_on_mastodon":"0"},"categories":[40],"tags":[119653,9,10,18,13,14,4771,6,3847,157739,19,17,4770,11,12,15,16,5,3171,286905,7,8,3173],"class_list":["post-677801","post","type-post","status-publish","format-standard","has-post-thumbnail","category-ireland","tag-bidding-wars","tag-breaking-news","tag-breakingnews","tag-eire","tag-featured-news","tag-featurednews","tag-fianna-fail","tag-headlines","tag-housing","tag-housing-minister","tag-ie","tag-ireland","tag-james-browne","tag-latest-news","tag-latestnews","tag-main-news","tag-mainnews","tag-news","tag-offaly","tag-online-bidding","tag-top-stories","tag-topstories","tag-tullamore"],"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@ie\/117233013741017140","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts\/677801","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/comments?post=677801"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts\/677801\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/media\/677802"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/media?parent=677801"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/categories?post=677801"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/tags?post=677801"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}