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The Psychology of Manipulation and Fraud in the Housing Market

Sara S. Koussan, Piotr Mateusz Jarecki

Annales Universitatis Mariae Curie-Skłodowska sectio H Oeconomia, 2026

Abstract

Theoretical background: This article analyzes the psychological and economic mechanisms of manipulation and psychological games in the real estate market, focusing on information asymmetry, cognitive biases, and the impact of emotions on purchasing decisions. It discusses key manipulative techniques used by market entities, their effects, and their implications for the stability of the housing market. Particular attention is given to the role of behavioral economics in explaining consumer behavior and potential measures to counteract unethical practices. Purpose of the article: The aim of this article is to identify and analyze the mechanisms of manipulation employed in the real estate market, assess their impact on consumer decision-making, and examine their consequences for market stability and functioning. Furthermore, the article seeks to formulate recommendations for strategies to combat unethical practices, with a particular emphasis on the role of regulations, consumer education, and modern technologies — such as blockchain and artificial intelligence — in enhancing market transparency. Research methods: The study was conducted using an online survey (CAWI) among 96 respondents with diverse demographic profiles. The research focused on perceptions of manipulative techniques, sources of information, and consumer responses to manipulation. Main findings: The findings confirm the widespread presence of manipulation in the real estate market and its significant…

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