More Rent Transparency Could Have Positive Impact On Policy
The post More Rent Transparency Could Have Positive Impact On Policy appeared on BitcoinEthereumNews.com. Paying rent and housing costs is never fun but could making those costs easier to understand change … More attitudes about tenant land lord policies. getty Moving is no fun. I’ve posted here before that what is often called a “housing crisis” is part of the friction and disutility of having to move a household from one place to another. A feature of this is the cost; hiring people to help, filing applications, paying a deposit, or putting up a down payment. When it comes to rental housing, monthly rent is a serious pain point. Think about it, for many households, housing costs are about a third of total gross pre-tax income. Writing a monthly rent check isn’t just annoying but can be a real challenge. And many often grow to resent it up to the point of believing it isn’t fair to have to pay rent at all. This can lead to calls for rent control, a regime that just doesn’t work. What if housing costs were more transparent, especially to renters? I stumbled upon a working paper from the Harvard Business School called, Lifting the Veil: The Benefits of Cost Transparency, a study about how being truthful about how much it costs to produce something effects consumers. The study discussed in the paper defines cost transparency as “the disclosure of the costs to produce a good or provide a service.” The paper’s abstract is refreshingly straightforward, “Building on the psychology of disclosure and trust, we posit that cost transparency, insofar as it represents an act of sensitive disclosure, fosters trust. In turn, this heightened trust enhances consumers’ willingness to purchase from that firm. In support of this account, we present six studies, conducted in the field and in the lab. A pre-registered field experiment indicated that diners were…
The post More Rent Transparency Could Have Positive Impact On Policy appeared on BitcoinEthereumNews.com.
Paying rent and housing costs is never fun but could making those costs easier to understand change … More attitudes about tenant land lord policies. getty Moving is no fun. I’ve posted here before that what is often called a “housing crisis” is part of the friction and disutility of having to move a household from one place to another. A feature of this is the cost; hiring people to help, filing applications, paying a deposit, or putting up a down payment. When it comes to rental housing, monthly rent is a serious pain point. Think about it, for many households, housing costs are about a third of total gross pre-tax income. Writing a monthly rent check isn’t just annoying but can be a real challenge. And many often grow to resent it up to the point of believing it isn’t fair to have to pay rent at all. This can lead to calls for rent control, a regime that just doesn’t work. What if housing costs were more transparent, especially to renters? I stumbled upon a working paper from the Harvard Business School called, Lifting the Veil: The Benefits of Cost Transparency, a study about how being truthful about how much it costs to produce something effects consumers. The study discussed in the paper defines cost transparency as “the disclosure of the costs to produce a good or provide a service.” The paper’s abstract is refreshingly straightforward, “Building on the psychology of disclosure and trust, we posit that cost transparency, insofar as it represents an act of sensitive disclosure, fosters trust. In turn, this heightened trust enhances consumers’ willingness to purchase from that firm. In support of this account, we present six studies, conducted in the field and in the lab. A pre-registered field experiment indicated that diners were…
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