Causal effects of information friction on willingness to pay for hurricane-resistant buildings

Sebastain N. Awondo and Lawrence S. Powell

Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), 2024, vol. 113, issue C

Abstract: We investigate the causal effects of information provision on willingness to pay (WTP) for precautionary building standards. In a randomized stated preference field experiment, we present video evidence that hurricane-resistant building standards outperform traditional building standards to a random sample of homeowners. Our analysis reveals evidence consistent with causal effects of video information on WTP for hurricane-resistant buildings. Overall, alleviating performance information friction increases WTP by $634 on average and three times more among risk-neutral homeowners if the WTP payment card range is not truncated.

Keywords: Disaster risk reduction; Willingness to pay; Hurricane-resistant buildings; Information friction; Field experiments (search for similar items in EconPapers)
JEL-codes: D81 G22 Q51 Q54 (search for similar items in EconPapers)
Date: 2024
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S2214804324001344
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:soceco:v:113:y:2024:i:c:s2214804324001344

DOI: 10.1016/j.socec.2024.102297

Access Statistics for this article

Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics) is currently edited by Pablo Brañas Garza

More articles in Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics) from Elsevier
Bibliographic data for series maintained by Catherine Liu ().