Does Information Reduce Covid-19 Related Negative Demand Shocks?

Agarwal, Sumit; Li, Keyang; Qin, Yu; Wu, Jing; Yan, Jubo

doi:10.2139/ssrn.4068359

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Does Information Reduce Covid-19 Related Negative Demand Shocks?

47 Pages Posted: 25 Apr 2022

See all articles by Sumit Agarwal

Keyang Li

University of International Business and Economics (UIBE) - School of International Trade and Economics

Jing Wu

Tsinghua University - Hang Lung Center for Real Estate; Tsinghua University - Department of Construction Management

Jubo Yan

Nanyang Technological University - School of Social Sciences

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

Suggested Citation: Suggested Citation

Agarwal, Sumit and Li, Keyang and Qin, Yu and Wu, Jing and Yan, Jubo, Does Information Reduce Covid-19 Related Negative Demand Shocks?. Available at SSRN: https://ssrn.com/abstract=4068359 or http://dx.doi.org/10.2139/ssrn.4068359