Does Information Reduce Covid-19 Related Negative Demand Shocks?
47 Pages Posted: 25 Apr 2022
Abstract
We study the effects of information treatments on mitigating the negative impacts on demand at specific locations with a survey experiment. Using two randomly assigned information treatments targeting Hubei products, we document that the respondents are more likely to choose a similar non-Hubei option at the same price and require a substantial amount of compensation to switch to the Hubei option. More importantly, both treatments effectively decrease the quantified negative impacts of COVID-19 on the demand for Hubei province, with the reason treatment affecting the higher stake choice and the emotion treatment changing the lower stake choice, respectively.
Keywords: COVID-19, Epidemic, Negative Demand Shock, Information Treatment
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