Voluntary disclosure under imperfect competition: Experimental evidence
AbstractThis study investigates disclosure behavior when a manager has incentives to influence the actions of a product market competitor in a Cournot duopoly. Theoretical research suggests that under various conditions the manager has incentives to withhold some signals and disclose others. Using an experimental economics method, we find support for partial information disclosure. Our results suggest that when the manager receives private information about industrywide cost, unfavorable (favorable) information is disclosed (withheld) and the competitor adjusts production accordingly. In contrast, when the manager receives private information about firm-specific cost, disclosure behavior is not affected by the favorableness of the information and the competitor's production decision is invariant to the disclosure choice.
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Bibliographic InfoPaper provided by Federal Reserve Bank of Atlanta in its series Working Paper with number 98-7.
Date of creation: 1998
Date of revision:
Publication status: Published in International Journal of Industrial Organization, January 2000
Other versions of this item:
- Ackert, Lucy F. & Church, Bryan K. & Sankar, Mandira Roy, 2000. "Voluntary disclosure under imperfect competition: experimental evidence," International Journal of Industrial Organization, Elsevier, vol. 18(1), pages 81-105, January.
- NEP-ALL-1998-12-09 (All new papers)
- NEP-EXP-1998-12-09 (Experimental Economics)
- NEP-GTH-1998-12-09 (Game Theory)
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