LLM Simulation of Tenant Energy Renovation Responses Using Transaction Cost Model
A recent study presents a novel persona modeling technique that accounts for friction in simulating tenant reactions to energy policy measures using LLMs. Researchers focused on perceived transaction cost (PTC) to illustrate practical frictions, including information overload, administrative burdens, coordination requirements, and perceived risks. In the realm of energy-efficient renovations (EER), tenants are characterized by their demographic traits and their views on costs, benefits, obstacles, and uncertainties. This research utilizes survey data collected from 1,068 individuals in the Netherlands. The goal of this approach is to enhance the authenticity of LLM simulations by integrating cognitive and social frictions that influence policy responses.
Key facts
- Study uses LLMs to simulate human opinions and decisions with demographic and persona-based prompts.
- Introduces friction-aware persona modeling using perceived transaction cost (PTC).
- PTC includes information burden, administrative effort, coordination demands, and perceived uncertainty.
- Applied to energy-efficient renovation (EER) context.
- Survey data from 1,068 citizens in the Netherlands.
- Aims to model practical frictions in policy response simulations.
Entities
Locations
- Netherlands