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Competitive intelligence and disclosure

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  • Mark Bagnoli
  • Susan G. Watts

Abstract

type="main"> Competitive intelligence (CI) activities open new opportunities for firms to acquire and disclose information. We show that disclosure depends on the relative usefulness of information to the competing firms and is generally less (more) likely with Cournot (Bertrand) competition and when firms adopt product differentiation strategies. When CI costs are independent of information characteristics, each firm seeks information solely useful to itself and discloses it unless it is a Bertrand competitor with customer information. Only when the cost advantage is sufficiently great does each firm seek information useful to itself and its rival.

Suggested Citation

  • Mark Bagnoli & Susan G. Watts, 2015. "Competitive intelligence and disclosure," RAND Journal of Economics, RAND Corporation, vol. 46(4), pages 709-729, October.
    • Handle: RePEc:bla:randje:v:46:y:2015:i:4:p:709-729
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    File URL: http://hdl.handle.net/10.1111/1756-2171.12103
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    References listed on IDEAS

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    Cited by:

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    3. Tao Wang, 2020. "Competitive Intelligence and Disclosure of Cost Information in Duopoly," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 57(3), pages 665-699, November.
    4. Michael Kopel & Eva Maria Putz, 2021. "Information sharing in a Cournot–Bertrand duopoly," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 42(7), pages 1645-1655, October.
    5. Fan, Cuihong & Jun, Byoung Heon & Wolfstetter, Elmar G., 2016. "Optimal bid disclosure in patent license auctions under alternative modes of competition," International Journal of Industrial Organization, Elsevier, vol. 47(C), pages 1-32.
    6. Xiong, Yan & Yang, Liyan, 2021. "Disclosure, competition, and learning from asset prices," Journal of Economic Theory, Elsevier, vol. 197(C).
    7. Kazunori Miwa, 2021. "An Experimental Study on Information Acquisition and Disclosure in a Cournot Duopoly Market," Discussion Papers in Economics and Business 13-01-Rev, Osaka University, Graduate School of Economics.
    8. Le Lin & Ke Liao & Deren Xie, 2023. "When Investors Speak, Do Firms Listen? The Role of Investors' Dividend‐related Complaints from Online Earnings Communication Conferences," Abacus, Accounting Foundation, University of Sydney, vol. 59(1), pages 32-75, March.
    9. Kazunori Miwa, 2016. "Welfare Effects of Endogenous Information Acquisition and Disclosure in Duopoly Markets," Discussion Paper Series DP2016-17, Research Institute for Economics & Business Administration, Kobe University.

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