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Strategic Disclosure of Research Results: The Cost of Proving Your Honesty

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  • Emeric Henry

Abstract

In situations where a biased sender provides verifiable information to a receiver, I study how strategic reporting affects the incentives to search for information. Research provides series of signals that can be used selectively in reporting. I show that the sender is strictly worse off when his research effort is not observed by the receiver: he has to conduct more research than in the observable case and in equilibrium, discloses all the information he obtained. However this extra research can be socially beneficial and mandatory disclosure of results can thus be welfare reducing. Finally I identify cases where the sender withholds evidence and for which mandatory disclosure rules become more attractive. Copyright � The Author(s). Journal compilation � Royal Economic Society 2009.

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Bibliographic Info

Article provided by Royal Economic Society in its journal The Economic Journal.

Volume (Year): 119 (2009)
Issue (Month): 539 (07)
Pages: 1036-1064

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Handle: RePEc:ecj:econjl:v:119:y:2009:i:539:p:1036-1064

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Cited by:
  1. Bourjade, Sylvain & Jullien, Bruno, 2011. "The roles of reputation and transparency on the behavior of biased experts," MPRA Paper 34813, University Library of Munich, Germany.
  2. Raphael Boleslavsky & Christopher Cotton, 2011. "Learning more by doing less," Working Papers 2012-1, University of Miami, Department of Economics.
  3. Martin Gregor, 2011. "Corporate lobbying: A review of the recent literature," Working Papers IES 2011/32, Charles University Prague, Faculty of Social Sciences, Institute of Economic Studies, revised Nov 2011.
  4. Daniel Stone, 2011. "A signal-jamming model of persuasion: interest group funded policy research," Social Choice and Welfare, Springer, vol. 37(3), pages 397-424, September.
  5. repec:hal:wpaper:halshs-00710122 is not listed on IDEAS
  6. Abel Brodeur & Mathias Lé & Marc Sangnier & Yanos Zylberberg, 2012. "Star wars: The empirics strike back," PSE Working Papers halshs-00710122, HAL.

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