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on Experimental Economics |
| By: | Witte, Marc J. (Vrije Universiteit Amsterdam) |
| Abstract: | What motivates workers’ referral decisions? Combining a field experiment in a firm and urban social network data, I first show that workers primarily refer those who previously referred them. This reciprocity leads to significant on-the-job productivity losses and excludes less connected individuals. Incentivized referrals reduce reciprocity and make workers screen more productive colleagues. Second, peripheral workers use referrals strategically to establish new and reciprocated links which persist after 18 months. These results are consistent with a network-based referral model where individuals trade off pecuniary and social incentives. The findings suggest that referrals through social networks can reinforce labor market inequalities. |
| Keywords: | field experiment, social networks, job referrals |
| Date: | 2025–11 |
| URL: | https://d.repec.org/n?u=RePEc:iza:izadps:dp18258 |
| By: | SASAKI, Hiroki; HORIE, Shinya; HORIE, Tetsuya; TANAKA, Katsuya |
| Abstract: | In this study, we explore the impact of "Nudge" and "Boost" methodologies on mitigating methane emissions from rice cultivation, a significant contributor to global greenhouse gas emissions. Through a cluster randomized control trial conducted in Japan, we assess whether strategic informational campaigns, incorporating these behavioral insight, can enhance the adoption of a prolonged mid-season drainage period, which can lower methane emissions from rice paddies. Our experimental results show notable differences in the effectiveness of basic communications from the local government as before (Control group) versus those enriched with social comparison messaging focusing on methane emission from paddy fields (Nudge). Specifically, we find a clear positive effect of social comparison messaging for farmers participating in community-based agriculture. Furthermore, our research indicates that targeted technical guidance (Boost), addressing prevalent concerns about altering traditional farming methods, significantly sways farmers' future intentions toward methane-reduction techniques. The study underscores the importance of combining nudges, which subtly alter the external choice architecture, with boosts that empower farmers' decision-making capabilities and counter cognitive biases, to effectively steer behavior towards environmentally sustainable practices. |
| Keywords: | Environmental Economics and Policy, Institutional and Behavioral Economics |
| Date: | 2024–08–07 |
| URL: | https://d.repec.org/n?u=RePEc:ags:iaae24:344318 |
| By: | Guylaine Nouwoue; Marc Ateba; Miguel A. Fonseca; Jannesquin Royer |
| Abstract: | We explore how instructing future taxpayers on basic tax information helps build a tax-paying culture under low state capacity. We embedded a randomized survey experiment in a large tax awareness campaign directed towards young adults in Cameroon. We randomly assigned 1, 962 public and private secondary school students from 42 classes to tax information classes. We provide causal evidence of significant effects on basic tax knowledge and compliance attitudes with differential treatment effects across gender, risk attitudes, and family backgrounds. |
| Keywords: | Tax compliance, Tax morale, Social norms, Tax evasion, Cameroon |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:unu:wpaper:wp-2025-84 |
| By: | James Bono; Beibei Cheng; Joaquin Lozano |
| Abstract: | AI agents are increasingly deployed to automate complex enterprise workflows, yet evidence of their effectiveness in identity governance is limited. We report results from the first randomized controlled trial (RCT) evaluating an AI agent for Conditional Access (CA) policy management in Microsoft Entra. The agent assists with four high-value tasks: policy merging, Zero-Trust baseline gap detection, phased rollout planning, and user-policy alignment. In a production-grade environment, 162 identity administrators were randomly assigned to a control group (no agent) or treatment group (agent-assisted) and asked to perform these tasks. Agent access produced substantial gains: accuracy improved by 48% and task completion time decreased by 43% while holding accuracy constant. The largest benefits emerged on cognitively demanding tasks such as baseline gap detection. These findings demonstrate that purpose-built AI agents can significantly enhance both speed and accuracy in identity administration. |
| Date: | 2025–11 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2511.13865 |
| By: | Brodeur, Abel (University of Ottawa); Cook, Nikolai (Wilfrid Laurier University); Valenta, David (University of Ottawa) |
| Abstract: | Artificial intelligence (AI) technologies are increasingly viewed as both a potential driver of environmental sustainability and a contributor to global energy demand. Yet little is known about how the public interprets these dual narratives. We conducted a pre-registered online experiment (N = 2142) on a representative sample of the United States to examine how framing the environmental impacts of AI—as positive or negative—affects beliefs, policy preferences, and behavioral intentions. Positive messaging led to greater optimism about AI’s environmental impact, lower support for regulation, increased support for government subsidies of AI-enabled technology adoption, and increased consumer preferences for AI-enabled appliances. Negative messaging increased support for regulation and decreased support for government subsidies. Consistent with previous evidence, the messenger (scientist vs journalist) had minimal impact. Our findings highlight the power of environmental framing in shaping public narratives around AI, with implications for science communication, sustainability governance, and technology acceptance. |
| Keywords: | online experiment, energy use, Artificial Intelligence, energy conservation, behavior |
| JEL: | O3 Q4 Q5 |
| Date: | 2025–11 |
| URL: | https://d.repec.org/n?u=RePEc:iza:izadps:dp18263 |
| By: | Zhen, Shihang; Xia, Xianli; Huang, Luchen; Cao, Yihan; Fu, Hanliang; Ren, Yanjun |
| Abstract: | With the prominence of nutrition-related health issues worldwide, functional food is supposed to be an efficient way to address this challenge by achieving its nutrition and health benefits. However, whether consumers are willing to pay (WTP) for high-nutritional value foods of this kind and what is the role of consumers’ risk preferences in their WTPs are unclear. This study employs a discrete choice experiment (DCE) to investigate the effect of risk preferences on consumers’ preferences and WTPs for functional food, focusing on four attributes of dairy products: origin, organic label, functionality and price. We also seek to understand the physiological mechanisms underlying this effect by a lab experiment using eye-tracking technology. The results show that consumers have various preferences and WTPs for different attributes of milk, but they are reluctant to pay for functional milk. Compared to consumers with low-risk preferences, consumers with high-risk preferences are more willing to purchase functional milk. The evidence from eye-tracking experiments indicates that visual attention to the attributes considered positively correlates with their consumption preference. Consumers with high-risk preferences tend to pay more attention to the functional attribute and therefore have a higher prob- ability of purchasing functional milk. This study implies that consumers’ risk preferences should be considered when promoting consumers to purchase functional food, as different consumers have significantly distinct preferences. |
| Keywords: | Food Consumption/Nutrition/Food Safety, Institutional and Behavioral Economics |
| Date: | 2024–08–07 |
| URL: | https://d.repec.org/n?u=RePEc:ags:iaae24:344293 |
| By: | Sam Sims (UCL Centre for Education Poicy & Equalising Opportunities); Clare Routledge (UCL Centre for Education Poicy & Equalising Opportunities) |
| Abstract: | Teacher shortages are widespread, yet the reasons people choose (not) to enter the profession remain poorly understood. We conducted two survey experiments in which thousands of undergraduates chose between pairs of hypothetical jobs. This allowed us to evaluate the effects of differences in pay, working patterns and other job attributes on job choices, as well as explore how personality type and values underpin job preferences. Contrary to existing research, which is largely based on self-reports, we found that extrinsic rewards have the most influence on job choices, even among those who are considering teaching. Policymakers looking to address shortages should improve the extrinsic rewards of teaching and communicate these, alongside the many altruistic and meaningful aspects of teaching, to potential new recruits. |
| Keywords: | teachers, occupational choice, recruitment, survey experiment, conjoint experiment |
| JEL: | I20 |
| Date: | 2025–11 |
| URL: | https://d.repec.org/n?u=RePEc:ucl:cepeow:25-15 |
| By: | Kirtley, A. |
| Abstract: | Sustainable development in agricultural trade requires agents to embrace changes to traditional practises that favour conservation and investing into their communities to incite social change. Recently, there has been a shift to prioritise the sustainability of coffee production in developing countries, with many exports now being subject to voluntary sustainability standards (VSS). These VSS apply pressures to farmers to adopt more environmentally and socially conscious production methods. Unfortunately, the uptake of VSS has remained low. To explore potential motives for this low uptake, we present the results of a lab in the field experiment uncovering the effect of information provision and peer influence on the performance of Vietnamese coffee farmers in a repeated one-shot threshold public good game. The purpose of this experiment was to understand whether cooperation towards the provision of a sustainable public good can be increased through information diffusion. This paper endeavoured to highlight a causal link between being more informed and an individual's valuation of sustainability. Estimates of farmer's willingness to contribute revealed that those who discussed information with peers were more likely to invest in sustainability for their community. These findings suggest peer pressure can nudge farmers toward the more socially optimal outcome. |
| Keywords: | Environmental Economics and Policy, Sustainability |
| URL: | https://d.repec.org/n?u=RePEc:ags:aes025:356628 |
| By: | Merkel, Lena; Bocoum, Fadima; Hartwig, Renate |
| Abstract: | Are consumers willing to trade-off verified drug quality against higher prices in markets where substandard and falsified antibiotics are common? We answer this using a randomized online survey experiment in Nigeria. The design elicits indifference curves between the price and the verified quality in a hypothetical quality-enhancing program. Respondents place substantial value on verifiable quality gains and, on average, accept modest price increases. Keeping quality constant, higher prices are also associated with greater perceived program success. This is consistent with the price operating as a (noisy) quality signal in a low-verification environment. We replicate the experiment in Kenya. Kenyan respondents value quality, but show weak response to price. Our results suggest that the sensitivity to consumer prices and the informative value of prices is context-dependent, limiting the generalizability of market-based mechanisms in different institutional settings. Policy implications are immediate: financing quality assurance partly through prices may be feasible in Nigeria if quality improvements are credible and visible to consumers, but similar strategies may not work in Kenya. |
| Abstract: | Sind Verbraucher in Märkten, in denen minderwertige und gefälschte Antibiotika weit verbreitet sind, bereit , höhere Preise für eine verbesserte Qualität von Medikamenten zu akzeptieren? Wir beantworten diese Frage anhand einer randomisierten Online-Umfrage in Nigeria. Das Design ermittelt Indifferenzkurven zwischen Preis und verifizierter Qualität im Kontext eines hypothetischen Programms zur Qualitätsverbesserung. Die Befragten legen großen Wert auf nachweisbare Qualitätsverbesserungen und akzeptieren im Durchschnitt moderate Preiserhöhungen. Bei gleichbleibender Qualität werden höhere Preise auch mit einem größeren wahrgenommenen Programmerfolg in assoziiert. Dies steht im Einklang mit der Funktion des Preises als (unpräzises) Qualitätssignal in einem Umfeld mit geringer Verifizierbarkeit. Wir replizieren das Experiment in Kenia. Die kenianischen Befragten legen Wert auf Qualität, reagieren jedoch nur schwach auf den Preis. Unsere Ergebnisse deuten darauf hin, dass die Sensibilität gegenüber Verbraucherpreisen sowie der Informationswert von Preisen kontextabhängig sind. Dies beschränkt die Generalisierbarkeit marktbasierter Mechanismen in unterschiedlichen institutionellen Rahmenbedingungen. Die politischen Implikationen liegen auf der Hand: Eine teilweise über Preise finanzierte Qualitätssicherung mag in Nigeria machbar sein, sofern Qualitätsverbesserungen glaubwürdig und für die Verbraucher erkennbar sind. In Kenia könnten ähnliche Strategien jedoch möglicherweise nicht funktionieren. |
| Keywords: | Price Premium, Consumer Preferences, Ex Ante Policy Design, Price-quality Trade-off, Substandard and Falsified Medicine |
| JEL: | D12 D82 I15 I18 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:rwirep:331881 |
| By: | Athapaththu, Poorni; Weerahewa, Jeevika |
| Abstract: | This study evaluated the willingness-to pay (WTP) for quality mango planting materials of TomEJC cultivar and identified the variables that affect WTP and degree of adoption of the technology. A second price sealed bid auction was conducted among villagers in Thirappane, Anuradhapura district, Sri Lanka to determine WTP and a Heckman two-stage model was estimated to ascertain the determinants of WTP. The respondents were randomly divided in to two groups and one group was given information on growing of TomEJC before the experiment was conducted. The socio-economic characteristics of the respondents were gathered using a structured questionnaire. The findings showed that the pooled sample's mean bid for TomEJC planting materials was LKR 287.03 per plant and the WTP of group that received advance notice was higher by LKR 151.62. Heckman model first-stage results indicated that the decision to adopt was positively and significantly influenced by household type, mango availability in the home garden, education level, and desire to begin commercial mango cultivation. The second-stage results revealed that WTP was positively & significantly influenced by information provision and average monthly income. These results suggest that the first step in promoting new technology will be to raise awareness targeting the non-poor farmers. |
| Keywords: | Community/Rural/Urban Development, Institutional and Behavioral Economics, Research and Development/Tech Change/Emerging Technologies |
| Date: | 2024–08–07 |
| URL: | https://d.repec.org/n?u=RePEc:ags:iaae24:344265 |
| By: | Almås, Ingvild (Dept. of Economics, Norwegian School of Economics and Business Administration); Caeyers, Bet (CMI - Chr. Michelsen Institute); Dautheville, Adrien (Dept. of Economics, Norwegian School of Economics and Business Administration); Kazi, Vivian (Economic and Social Research Foundation); Krutikova, Sonya (Faculty of Humanities, University of Manchester); Somville, Vincent (Dept. of Economics, Norwegian School of Economics and Business Administration) |
| Abstract: | The transition from school to the labor market presents significant challenges. This is particularly the case in low- and middle-income countries where the youth population attending primary and secondary school is expanding rapidly and overoptimism combined with limited information can lead to suboptimal decision-making regarding further education and other career preparation choices. We design and test through a cluster-randomized controlled trial a scalable low-cost intervention designed to help secondary school students in Tanzania develop hopeful yet realistic career plans. This is done through a structured, edutainment podcast series and teacher-led classroom discussions. We show that treated students perform better academically, with a significant increase in national exam success and a higher likelihood of selection into further education. Additionally, self-employment rates and income levels increase. These outcomes are plausibly driven by enhanced hope—characterized by improved agency and pathway clarity—, by an increase in the likelihood of developing b-plans, and by a reduction in stress. Our findings highlight the potential of structured guidance through edutainment in improving the transition from secondary school. |
| Keywords: | School-to-labor-market transition; Low- and middle-income countries; Decision-making; Cluster-randomized controlled trial |
| JEL: | J15 |
| Date: | 2025–11–19 |
| URL: | https://d.repec.org/n?u=RePEc:hhs:nhheco:2025_019 |
| By: | Giulia Tagliapietra (Università degli studi di Ferrara); Susanna Mancinelli (Università degli studi di Ferrara); Massimiliano Mazzanti (Università degli studi di Ferrara) |
| Abstract: | Meat consumption contributes significantly to environmental degradation and public health burdens. Yet, altering dietary behavior remains a challenge, particularly due to cognitive and cultural resistance. This study investigates whether linguistic nudges, specifically, labeling food options without meat using health-oriented language versus a language that underlines the vegetarian identity alone, can influence consumer food preferences. A survey-based experiment was conducted to compare preferences for sandwiches labeled as “The Vegetarian Choice†versus “The Healthy Choice†, incorporating demographic, attitudinal, and behavioral variables. Results from a Wilcoxon signed-rank show no statistically significant difference in preference between the two labels. However, patterns suggest growing openness to vegetarian options and minimal evidence of social stigma toward vegetarianism among the respondents, all of whom were Italian. These findings point to cultural shifts in dietary norms and suggest that health-related labels alone may not be sufficiently persuasive to alter food preferences. The results provide new insights into consumer behavior and the nuanced role of framing in sustainable consumption strategies. |
| Keywords: | Linguistic nudges, meat consumption, sustainability, cognitive bias, behavioral economics |
| Date: | 2025–11 |
| URL: | https://d.repec.org/n?u=RePEc:srt:wpaper:1125 |
| By: | Danila Serra (Texas A&M University) |
| Abstract: | Committees for the management and redistribution of public resources are common in a variety of settings, ranging from homeowners’ associations (HOAs), to parent–teacher organizations to government councils. Why do some individuals join these committees, and what predicts their behaviors once they become committee members? Joining is costly but necessary for the provision of public goods. Prosocial, intrinsically motivated individuals may therefore be more likely to self-select into committees. However, because there is little oversight and transparency over committee expenditures, making it relatively easy to embezzle funds, committees could also attract the most dishonest individuals. We employ a laboratory experiment to test whether and to what extent individuals’ decision to join a committee in charge of public funds depends on their type (honest versus dishonest, and prosocial versus self-interested) and their subjective beliefs of how (dis)honest the existing committee members are. We also test whether mechanisms that resemble town hall meetings and require committee members to communicate their decisions to the public affect both the decision to engage in corruption and the decision to join committees. |
| Date: | 2025–11–07 |
| URL: | https://d.repec.org/n?u=RePEc:boc:econ25:05 |
| By: | José María Durán-Cabré (Universitat de Barcelona & IEB); Alejandro Esteller-Moré (Universitat de Barcelona & IEB); Riccardo Secomandi (University of Ferrara & IEB) |
| Abstract: | We examine how information influences the marginal willingness to pay taxes (MWTPT) through a four-wave randomized survey experiment conducted during the COVID-19 pandemic. Specifically, we assess the impact of quantitative (data on the actual tax-to-GDP ratio) and qualitative (basic pros and cons of taxation) information on revealed MWTPT. The results show that qualitative information increases MWTPT, particularly among high-income individuals. In contrast, quantitative information only reduces MWTPT among high-income individuals who initially underestimated the aggregate tax burden. Hence, those who are potentially more affected by taxes are also more sensitive to the provision of information. These findings suggest that information can shape perceptions of the tax system and, consequently, influence individuals' willingness to contribute to public good provision. This has important implications for tax policy design and efforts to reduce political polarization. If these efforts are not properly implemented, the revealed price of democracy will remain biased. |
| Keywords: | Survey experiment, Fiscal knowledge, Marginal Willingness to Pay Taxes, Income based behaviour |
| JEL: | D72 D91 H20 H26 H30 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:ieb:wpaper:doc2025-04 |
| By: | Leonardo Bursztyn; Alex Imas; Rafael Jiménez-Durán; Aaron Leonard; Christopher Roth |
| Abstract: | Anxiety about falling behind can drive people to embrace emerging technologies with uncertain consequences. We study how social forces shape demand for AI-based learning tools early in the education pipeline. In incentivized experiments with parents—key gatekeepers for children’s AI adoption—we elicit their demand for unrestricted AI tools for teenagers’ education. Parental demand rises with the share of other teenagers using the technology, with social forces increasing willingness to pay for AI by more than 60%. Providing information about potentially adverse effects of unstructured AI use negatively shifts beliefs about the merits of AI, but does not change individual demand. Instead, this information increases parents’ preference for banning AI in schools. Follow-up experiments show that social information has little effect on beliefs about AI quality, perceived skill priorities, or support for bans, suggesting that effects operate through social pressure rather than social learning. Our evidence highlights social pressure driving individual technology adoption despite widespread support for restricting its use. |
| JEL: | D83 D91 I20 O33 |
| Date: | 2025–11 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:34488 |
| By: | Magdalena Adamus (Masaryk University, Faculty of Economics and Administration); Martin Guzi (Masaryk University, Faculty of Economics and Administration); Eva Ballová Mikušková (Slovak Academy of Sciences) |
| Abstract: | The paper investigates gender biases and differential treatment of women and men in the business start-up phase. A sample of 498 entrepreneurs from Slovakia participated in an online experiment and evaluated three fictitious business plans in terms of the applicants’ competence, likeability, and business ability. The start-ups were positioned in three different sectors—cosmetics production, services provision, and software development—where men’s and women’s chances of success may be viewed differently. Following Goldberg’s paradigm, half of the evaluators received business plans presented as written by female and half by male applicants; otherwise the plans were identical. Results imply that female applicants are assessed similarly to male applicants, but more masculine evaluators assess women’s business plans and their potential in entrepreneurship more critically. The study advises caution in recommending more female evaluators in the business plan assessment. If women who become involved in entrepreneurship are excessively masculine and masculinity is associated with a less favourable evaluation of potential female entrepreneurs, such policies could backfire against women, putting them in a more disadvantaged position. |
| Keywords: | gender identity; masculinity; entrepreneurship; start-up; Goldberg paradigm; gender-role theory |
| JEL: | J16 M13 L26 |
| Date: | 2025–11 |
| URL: | https://d.repec.org/n?u=RePEc:mub:wpaper:2025-07 |
| By: | Luca Corazzini; Elisa Deriu; Marco Guerzoni |
| Abstract: | Large language models (LLMs) increasingly mediate economic and organisational processes, from automated customer support and recruitment to investment advice and policy analysis. These systems are often assumed to embody rational decision making free from human error; yet they are trained on human language corpora that may embed cognitive and social biases. This study investigates whether advanced LLMs behave as rational agents or whether they reproduce human behavioural tendencies when faced with classic decision problems. Using two canonical experiments in behavioural economics, the ultimatum game and a gambling game, we elicit decisions from two state of the art models, Google Gemma7B and Qwen, under neutral and gender conditioned prompts. We estimate parameters of inequity aversion and loss-aversion and compare them with human benchmarks. The models display attenuated but persistent deviations from rationality, including moderate fairness concerns, mild loss aversion, and subtle gender conditioned differences. |
| Date: | 2025–11 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2511.12319 |
| By: | Araya, Roberto; Cristia, Julian P.; Escalante, Lisseth; Fabregas, Raissa; Méndez, Carolina; Ríos, Gera |
| Abstract: | Self-led educational technologies have the potential to improve student learning at scale, but sustaining student engagement with these platforms remains a challenge. We present results from an experimental evaluation implemented following the scale-up of a math platform in Peru, where primary school teachers received weekly WhatsApp messages summarizing their students platform activity and encouraging them to promote their students engagement. The messages increased the average weekly share of students using the platform by 5 percentage points (a 17% increase) and the average share of math exercises completed by 4 percentage points (a 16% increase). Effects dissipated once the messages stopped, suggesting that salience and simplified monitoring are likely mechanisms. We find little evidence of impact heterogeneity based on teacher characteristics or students prior platform use and achievement. Non-experimental evidence suggests that increased use of the student math platform improved math learning. Overall, our findings indicate that light-touch communication with teachers can cost-effectively strengthen engagement with EdTech platforms scaled through the education system. |
| Keywords: | Messages;Education;Math achievement;Online |
| JEL: | I21 I25 D91 |
| Date: | 2025–11 |
| URL: | https://d.repec.org/n?u=RePEc:idb:brikps:14371 |
| By: | Elijah Kipchumba |
| Abstract: | Persons with disabilities are disproportionately excluded from livelihood opportunities. This exclusion traps persons with disabilities and their households in perpetual poverty. I study whether a programme that simultaneously strengthens the ultra-poor's productive, financial, human, and social assets alleviates this exclusion. The programme features adaptations of a previously successful, multifaceted program to make it disability-inclusive. |
| Keywords: | People with disabilities, Discrimination, Cluster randomized trial, Uganda |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:unu:wpaper:wp-2025-87 |
| By: | Ligon, Ethan; Silver, Jedidiah |
| Abstract: | Consumption in rural areas of low-income countries is often highly variable across seasons. What drives this seasonality, and can the welfare of households across the "lean season" be improved via the provision of credit? We measure prices and consumption for farm-households across seasons in Gombe, Nigeria, and at the same time elicit information about farmers' intertemporal marginal rates of substitution by offering them one-month bonds with different rates of return. Against this background, we also implement a randomized post-harvest loan (PHL) program, which provides credit---up to a generous ceiling---at a subsidized interest rate. Farmers randomly offered the loan almost universally borrow the maximum amount. In this experiment, we find that treated farmers store more grain. This is a risky investment, and in the year of our experiment it did not pay off, as maize prices did not increase following the harvest. Given this, it is unsurprising that we find no significant effects of the loan on consumption, investment or welfare---using the PHL to make a leveraged bet on maize prices going up was bad investment /ex post/. Was it a bad investment /ex ante/? This depends on whether lean seasons are due to poorly functioning financial markets in Gombe, or because markets in Gombe are poorly integrated with the broader market. We adapt tools from the asset pricing literature to our data to test the null of well-functioning local financial markets in Gombe. We fail to reject this null hypothesis, suggesting that promoting spatial integration may improve lean-season welfare more than the local provision of credit would. |
| Keywords: | Social and Behavioral Sciences, Seasonality, Credit, Nigeria, Post-Harvest Loans |
| Date: | 2025–09–02 |
| URL: | https://d.repec.org/n?u=RePEc:cdl:agrebk:qt81k9j2q0 |
| By: | Marius Müller; Carsten Lausberg |
| Abstract: | Artificial Intelligence (AI) is becoming an integral part of everyday processes in the real estate industry. In real estate valuation, AI has long been used for automated valuations, but so far rarely for manual valuations. One reason for the reluctant adoption is the complex and know-ledge-intensive process that requires the careful evaluation of numerous factors. This paper investigates for condominiums whether AI can improve manual real estate valuations by redu-cing time and enhancing accuracy. To address this question, we first provide a comprehensive review of the current literature on AI applications in real estate valuation and discuss the po-tential advantages and drawbacks of integrating AI into valuation practices. Then we present the results of an experiment in which the 28 participants were asked to appraise an apartment using either an AI-supported tool or a conventional Excel-based tool. Performance indicators show that the AI tool significantly reduces time and inter-valuer variability, while valuation ac-curacy is largely unaffected. The insights gained from this analysis contribute to understanding the practical applicability of AI in real estate valuation and highlight opportunities for further research and industry adoption. |
| Keywords: | Appraisal; Artificial Intelligence; Real Estate Valuation; valuation accuracy |
| JEL: | R3 |
| Date: | 2025–01–01 |
| URL: | https://d.repec.org/n?u=RePEc:arz:wpaper:eres2025_216 |