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Yet such simulations rarely model the practical, cognitive, or social frictions that shape how people respond to policy interventions. Perceived transaction cost (PTC) provides a useful lens for modeling the practical frictions that shape policy responses, such as information burden, administrative effort, coordination demands, and perceived uncertainty. We use this lens to develop a friction-aware persona modeling approach for LLM-based simulation. In the context of energy-efficient renovation (EER), tenants are represented not only by who they are demographically, but by how they perceive the costs, benefits, barriers, and uncertainties associated with proposed renovation plans. Using survey data collected from 1,068 citizens in the Netherlands, comprising approximate","title":"Simulating Tenant Responses to Energy Policy Interventions with Transaction-Cost-Aware LLM Age","url":"https://arxiv.org/abs/2607.24341","vendor":"arxiv_cs_ai"},"summary":"arXiv:2607.24341v1 Announce Type: new \nAbstract: Recent studies use Large language models (LLMs) to simulate human opinions and decisions by prompting models with demographic, attitudinal, or persona-based descriptions. Yet such simulations rarely model the practical, cognitive, or social frictions that shape how people respond to policy interventions. Perceived transaction cost (PTC) provides a useful lens for modeling the practical frictions that shape policy responses, such as information burden, administrative effort, coordination demands, and perceived uncertainty. We use this lens to develop a friction-aware persona modeling approach for LLM-based simulation. In the context of energy-efficient renovation (EER), tenants are represented not only by who they are demographically, but by how they perceive the costs, benefits, barriers, and uncertainties associated with proposed renovation plans. 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