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Is No News (Perceived as) Bad News? An Experimental Investigation of Information Disclosure

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  • Ginger Zhe Jin
  • Michael Luca
  • Daniel Martin

Abstract

This paper uses laboratory experiments to directly test a central prediction of disclosure theory: that strategic forces can lead those who possess private information to voluntarily provide it. In a simple two-person disclosure game, we find that senders disclose favorable information, but withhold less favorable information. The degree to which senders withhold information is strongly related to their stated beliefs about receiver actions, and their stated beliefs are accurate on average. Receiver actions are also strongly related to their stated beliefs, but receiver actions and beliefs suggest they are insufficiently skeptical about non-disclosed information in the absence of repeated feedback.

Suggested Citation

  • Ginger Zhe Jin & Michael Luca & Daniel Martin, 2015. "Is No News (Perceived as) Bad News? An Experimental Investigation of Information Disclosure," NBER Working Papers 21099, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:21099
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    References listed on IDEAS

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    More about this item

    JEL classification:

    • C9 - Mathematical and Quantitative Methods - - Design of Experiments
    • D8 - Microeconomics - - Information, Knowledge, and Uncertainty
    • K2 - Law and Economics - - Regulation and Business Law
    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation

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