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On the Optimality of Full Disclosure

Author

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  • Emiliano Catonini
  • Sergey Stepanov

Abstract

A privately informed sender can commit to any disclosure policy toward a receiver, whose actions affect the utility of the sender. We show that full disclosure is optimal under a sufficient condition with some desirable properties. First, it speaks directly to the parties' utility functions, as opposed to the sender's indirect utility function; this makes it easily interpretable and verifiable. Second, it does not require the sender's payoff to be a function of the posterior mean state. Third, it is weaker than the conditions obtained in the literature for some specific settings.

Suggested Citation

  • Emiliano Catonini & Sergey Stepanov, 2026. "On the Optimality of Full Disclosure," RAND Journal of Economics, RAND Corporation, vol. 57(2), pages 300-314, June.
    • Handle: RePEc:bla:randje:v:57:y:2026:i:2:p:300-314
    DOI: 10.1111/1756-2171.70013
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