IDEAS home Printed from https://ideas.repec.org/p/bon/boncrc/crctr224_2020_145v2.html
   My bibliography  Save this paper

Hidden Testing and Selective Disclosure of Evidence

Author

Listed:
  • Claudia Herresthal

Abstract

A decision maker faces an approval choice under uncertainty. An agent can gather information through sequential testing. Players agree on the optimal choice under certainty, but the decision maker has a higher approval standard than the agent. We compare the case where testing is hidden and the agent can choose whether to disclose his findings to the case where testing is observable. The agent can exploit the additional discretion under hidden testing to his advantage if and only if the decision maker is sufficiently inclined to approve. Hidden testing then yields a Pareto improvement over observable testing if the conflict between players is larger than some threshold, but leaves the decision maker worse off and the agent better off if the conflict is smaller than this threshold.

Suggested Citation

  • Claudia Herresthal, 2021. "Hidden Testing and Selective Disclosure of Evidence," CRC TR 224 Discussion Paper Series crctr224_2020_145v2, University of Bonn and University of Mannheim, Germany.
    • Handle: RePEc:bon:boncrc:crctr224_2020_145v2
    as

    Download full text from publisher

    File URL: https://www.crctr224.de/research/discussion-papers/archive/dp145
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Dirk Bergemann & Marco Ottaviani, 2021. "Information Markets and Nonmarkets," Cowles Foundation Discussion Papers 2296, Cowles Foundation for Research in Economics, Yale University.

    More about this item

    Keywords

    endogenous information acquisition; verifiable disclosure; transparency; questionable research practices;
    All these keywords.

    JEL classification:

    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bon:boncrc:crctr224_2020_145v2. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: CRC Office (email available below). General contact details of provider: https://www.crctr224.de .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.