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Can ratings mitigate consumer inattention? Evidence from the Swedish housing market

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  • Berg, Petter

Abstract

I study the effects of ratings designed to capture the financial risk associated with apartment ownership in Sweden. I find a discontinuous impact around rating thresholds on sales prices and real estate agents’ pricing decisions, but only after ratings started being displayed in online listings. This is not driven by changes in the number of bidders in apartment auctions. However, the magnitude of the rating effect is larger for sales administered by high- relative to low-quality real estate agents. My results suggest that ratings conveying financial information to consumers must ensure a high degree of salience to be effective. However, financial intermediaries remain likely to play a role in the transmission of such information.

Suggested Citation

  • Berg, Petter, 2026. "Can ratings mitigate consumer inattention? Evidence from the Swedish housing market," Journal of Economic Behavior & Organization, Elsevier, vol. 241(C).
    • Handle: RePEc:eee:jeborg:v:241:y:2026:i:c:s0167268125004664
    DOI: 10.1016/j.jebo.2025.107349
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    Keywords

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    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading
    • G24 - Financial Economics - - Financial Institutions and Services - - - Investment Banking; Venture Capital; Brokerage
    • G40 - Financial Economics - - Behavioral Finance - - - General

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