IMPERFECT INFORMATION AND ENTREPRENEURS’ CHOICE ON PROVISION OF HOUSE FITTINGS

Entrepreneurs have always been regarded as talented individuals who can bear the risk of running a business. They can reap a huge profit in return for their hard work. In mainland China, most housing entrepreneurs do not provide housing with fittings. There are no floor or wall fittings, kitchen appliances or bathroom fittings. Home buyers only receive bare units when developers finish their job. What is the motive behind this choice? This paper analyses the motive based on imperfect information and entrepreneurs’ risk-averse behaviour.