Is Ambiguity Always Adverse?: Empirical Evidence from the Wireless Emergency Alerts in Pandemic

Abstract

Wireless emergency alerts (WEAs) have become a crucial information system to notify residents of potential hazards in their vicinity. Using a large transaction dataset, we investigate (1) how WEAs influence offline and online transactions as a proxy to public mobility, and (2) how different types of information in WEAs affect transactions. Our results indicate that WEAs that only notify the occurrence of confirmed cases can significantly reduce public mobility compared to those that provide information on the exact movement of the patient. Further analysis suggests that the treatment effects of such WEAs are more pronounced in high-income areas.

Keywords: Wireless emergency alerts, societal impacts of IS, COVID-19 pandemic, offline and online transactions