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.
Full Text
Published Version
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call