Why don't you pay? : studies on the property fee payment behaviors

Abstract

The collection of property management fees in China has become a hot topic of social concern and a challenging issue in governance. This study, based on the discussion of traditional background factors and the correlation between historical and current payment behaviors, reveals the insufficiency of existing industry theories in terms of explanatory power. On this basis, a new model—Model 2—from the perspective of behavioral economics is proposed. Although Model 2 demonstrates a certain causal relationship using the time series of behaviors, correlation does not equate to causality. Therefore, this study further explores two issues to strengthen the argument for causality: firstly, the impact of four different external shocks on individual owners' payment habits is studied, revealing that the influence of non-economic factors is significant and has a hidden nature; secondly, through non-economic means of nudge experiments, it is found that appropriate information cues can improve individuals' anchoring psychology, thereby promoting the improvement of payment behavior, further verifying the effectiveness of the theory of limited attention. This study mainly relies on secondary data, supplemented by first-hand data obtained from nudge experiments, to enhance the completeness of causal inference. The study constructs a comprehensive framework that includes seven hypotheses and employs various research methods such as linear regression, regression discontinuity (RD), difference-in-differences (DID), and randomized experiments. In terms of theoretical contributions, the analysis of Model 1 compensates for the lack of quantitative analysis in existing literature in this industry. More importantly, Model 2, proposed for the first time from the perspective of behavioral economics, fills an important gap in literature with its strong explanatory power. In addition, the quantitative research on external shocks not only provides a new perspective for industry literature but also enriches domestic social management literature, the impact of which has long been neglected by government departments and business managers, resulting in huge social management costs. This study, together with Model 2, forms a new dynamic analysis framework. Thirdly, the nudge experiment, in a cost-effective manner, fills the gap in industry and social management experimental literature. Lastly, the recursive formula or the mechanism of behavioral inertia summarized by the study has guiding significance for social management work, helping to categorize and resolve conflicts, respond to disputes, and play a preventive role in daily management. In terms of practical contributions, this study provides new perspectives and analytical frameworks for the property management industry, offering methods and experience for solving problems and helping Chinese property management companies to enhance their viability. Secondly, the study helps to improve the quality of life for residents, promote community harmony, reduce social conflicts, increase grassroots administrative efficiency, and reduce the waste of local judicial resources. In addition, this study also helps senior managers of property management companies to improve their theoretical literacy and optimize decision-making processes.