'Auction fever and loss aversion' can drive individuals to outbid each other, noted the ESRI. Image: Getty

The Republic’s homebuying process is stoking bidding wars and pushing property prices higher, a new study has found.

To assess how bidder behaviour changed under different auction processes, the Economic and Social Research Institute (ESRI) conducted a controlled auction experiment involving some 800 participants.

It found participants’ bids were pushed higher in open auctions managed by estate agents or online platforms than in sealed bi

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