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Please use this identifier to cite or link to this item: https://dspace.lboro.ac.uk/2134/36525

Title: “Smarter information, smarter consumers”? Insights into the housing market
Authors: Gong, Cynthia M.
Lizieri, Colin
Bao, Helen X.H.
Keywords: Information disclosure
WTA–WTP disparity
Nudge
Loss aversion
Housing market
Issue Date: 2018
Publisher: © Elsevier
Citation: GONG, C.M., LIZIERI, C. and BAO, H.X.H., 2018. “Smarter information, smarter consumers”? Insights into the housing market. Journal of Business Research, 97, pp.51-64.
Abstract: This study explores how information helps housing consumers make informed decisions and discusses potential market outcomes. We analyse the interaction between the disclosure of information on property conditions and the disparity between home sellers' willingness to accept (WTA) and home buyers' willingness to pay (WTP). Three hypotheses are derived and validated through field experimental investigation within the property market. We find that a WTA–WTP disparity exists. The identified policy instrument for information disclosure appears to function as expected. The WTA–WTP disparity is considerably reduced after information disclosure, and market liquidity and efficiency are improved. This study is an important complement to prior research on how information changes the behaviour of consumers in housing markets. Findings can inform central governments about the wider benefits of smart disclosure in the future, as well as the scope, format and structure of information supplied to general housing consumers to promote efficiency.
Description: This paper is closed access until 26 June 2020.
Sponsor: The authors are grateful for the financial support of the National Natural Science Foundation of China (Project #71231005 and #71671076) and the technical support of China Index Academy.
Version: Accepted for publication
DOI: 10.1016/j.jbusres.2018.12.036
URI: https://dspace.lboro.ac.uk/2134/36525
Publisher Link: https://doi.org/10.1016/j.jbusres.2018.12.036
ISSN: 0148-2963
Appears in Collections:Closed Access (Business)

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