Payment of rent and housing costs is never fun but could make this cost easier to understand the change … more
Moving is not fun. I have published here before that, what is often called “housing crisis” is part of friction and difficulty having to move a household from one place to another. A feature of this is the cost. Leasing people for assistance, applications, payment payment or advance payment. When it comes to renting housing, the monthly rent is a serious pain point. Think about it, for many households, the cost of housing is about one -third of the total gross income before taxes. The writing of a monthly rent check is not just annoying, but it can be a real challenge. And many often grow older to turn it up to the point that we believe that it is not fair to have to pay any rent at all. This can lead to calls for rent check, a status that just doesn’t work. What if the housing cost was more transparent, especially for tenants?
I intend a work paper from Harvard Business School, called, Lift of veil: The benefits of cost transparencyA study of how it is honest about how much it costs to produce something affects consumers. The study discussed in the document defines the transparency of the cost as “the disclosure of the cost to produce a good or the provision of service”. Paper summary is refreshing simple,
“Based on the psychology of revelation and trust, we put that the cost of transparency, to the extent that it represents an act of sensitive revelation, enhances trust. The revelation of its components also included the cost of the cafeteria to do so.
How did the study team show it? There is a good example in the study of a wallet seller that had five different colors of wallet. The construction intended to include cost information all of this in marketing materials, but included only information on three colors. The result was a natural experiment. A review of sales data found that there was a 22% increase in sales of “processed” wallets. Treatment is a statistical term that refers to the data receiving intervention. The study group used a dispute approach to differences for control over other factors that could have affected the outcome. They were satisfied that, indeed, the exchange of cost information makes people more likely to buy a product.
Well, let’s assume it’s true. All things are equal, people are more likely to buy a product that explains the cost behind the price. But are they happier to pay for the product? Study sites a series of literature on kayak.com, a travel search service that chases travel opportunities. People like Kayak’s Operational Transparency: “The site reveals in real time that airlines are looking for.” The study group suggests that the operational transparency is different from the cost transparency and the transparency of prices, the distribution of prices. “Prices transparency and price distribution have been found and both increase market intentions.”
The study does not reach a “happiness” question or if transparency improves the dissatisfaction that a big one has to pay for some necessity. But the study is considered provocative. So many of what people find it difficult to rent or housing costs about the perception of profits or greed. The study argues that “if, as we put, the voluntary revelation of cost business increases trust, then it should increase market interest both when prices are amazingly high and when prices are amazingly low”.
Interestingly, just last July, a website called Rent, offering that it says, “innovative solutions that connect tenants to the apartment communities they will love”, published an article entitled “Here is why the fee transparen. “The article concerns a research that validates Harvard’s work document, finding that, on the basis of tenant’s answers,” clarity on costs are an effective way to build confidence with the prospects. “And the article points out that such notifications” It requires more transparency in rent, pay and utility businesses. “
Could more revelation mitigate the requirements for rent control and other regulatory interventions? It is worth taking a closer look at the feelings People have about the result of such revelations. I’m curious but thinking. Housing is very different from other products, as it has no substitute. Households can reduce consumption or find other options when prices go up or profit. Will you know how much household rental control covers real estate taxes and government regulation to change the views of tenants? It is possible. What needs to happen is the greatest assessment of the notification arrangement that poses this question.
