Events

In a randomized experiment covering 7,068 complexes in 68 Chinese cities, we disclosed nearby soil contamination publicly on social media or privately to real estate agents, homeowners, or both. Public disclosure lowers housing prices, with lower buyer interest and listing prices. Informing agents alone shifts showings to other complexes, reducing sales without moving prices. Informing homeowners alone shortens time on market without detectable effects on prices or sales volume. With both informed, prices fall and sales increase despite fewer showings. A model with asymmetric information can rationalize the results: informed owners infer from fewer showings that agents also know about the pollution and accept lower offers before the information spreads to other buyers.