Comment by Archelaos
5 hours ago
I would generalise this a little: The problem with buying a complex item is information inequality. The seller knows more about it than the potential buyer. When inspecting the item, the buyer therefore looks for signs of hidden defects or for evidence that the item is in good condition overall. In this way, cleanliness becomes a proxy for the general condition of the object. Similar mechanisms are at work elsewhere too. Take job applications, for example. A sloppy application is a red flag, even if the applicant’s references are excellent.
Aka: a heuristic: https://en.wikipedia.org/wiki/Heuristic
"Information inequality" is known as "risk". Risk is inherent in any transaction. That factors into the price: one is willing to pay less the more risk there is, and will pay more for less risk.
Much too simple.
Most "risks" have an upside and a downside. In this case, for example, the solar PV system may be working better or worse than the (potential) buyer initially comes to understand.
We have huge industries based on selling "risk, but with a huge potential upside" to people willing to pay for access to the potential upside. Many of those customers are not interested in low risk in that context.
So "more risk, pay less" is not a hard and fast rule, but depends on what is being purchased, the circumstances of the buyer, and more.