Subsidy Design for Personal Protective Equipments (PPEs) Adoption

Xu，Ailing1; He，Qiao Chu2; Chen，Ying Ju3

10.1007/978-3-030-75166-1_17

2022

2198-7246

2198-7254

Springer Proceedings in Business and Economics

255-260

Since December 2019, the COVID-19 outbreak has spread in over 100 countries and regions at a stunning pace. To prevent humanitarian health hazards such as COVID-19, people are strongly suggested to purchase and use Personal Protective Equipments (PPEs) for self-protection. However, the fraction of the population who refused to comply with the PPEs is high (and also much higher in some regions than others). In this paper, we focus on an empirically tested behavioral explanation for the compliance obstacle (a lack of self-control) based on the present-bias effect, which means the trend to give a higher valuation to a present reward but a lower valuation to a future reward (O’Donoghue & Rabin, 2006). Since the utility of PPEs is realized in the future, a consumer may postpone his purchase decision but finally abandon his purchase plan in the future period due to this present-bias effect. The key take-away we focus on is that advance selling can be beneficial to the consumers as a commitment device (Bryan et al., 2010). However, the effect of advance selling may be limited, especially for consumers with low valuation, and can only encourage a part of consumers to purchase PPEs. Advance selling alone cannot fully address the compliance obstacles in PPEs.

其他

英语

2-s2.0-85126255516

Scopus

1.School of Business and Management,The Hong Kong University of Science and Technology,Clear Water Bay, Kowloon,Hong Kong
2.Faculty of Business Administration,Southern University of Science and Technology,Shenzhen,China
3.School of Business and Management & School of Engineering,The Hong Kong University of Science and Technology,Clear Water Bay, Kowloon,Hong Kong

Xu，Ailing,He，Qiao Chu,Chen，Ying Ju. Subsidy Design for Personal Protective Equipments (PPEs) Adoption[C],2022:255-260.