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The role of ex post transparency in information transmission—An experiment

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  • Behnk, Sascha
  • Barreda-Tarrazona, Iván
  • García-Gallego, Aurora

Abstract

Asymmetric information in economic relationships often provides incentives to deceive. Previous findings show that ex ante disclosure of conflicts of interest not only fails to improve these relationships but also leads to even more deception. This study proposes that providing ex post transparency could play an important role in reducing deception. Different scenarios of a sender–receiver game allow us to show not only that disclosing conflicts of interest ex post does not induce more deception but also that a 50% chance of subsequent disclosure significantly reduces deception in the case in which the sender obtains a small gain at the expense of a comparatively big loss for her counterpart. We find no significant reductions under other circumstances. Regarding the receivers, we find that the increase in honest messaging, when it takes place, is not anticipated.

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  • Behnk, Sascha & Barreda-Tarrazona, Iván & García-Gallego, Aurora, 2014. "The role of ex post transparency in information transmission—An experiment," Journal of Economic Behavior & Organization, Elsevier, vol. 101(C), pages 45-64.
  • Handle: RePEc:eee:jeborg:v:101:y:2014:i:c:p:45-64
    DOI: 10.1016/j.jebo.2014.02.006
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    Cited by:

    1. Anders Poulsen & Graciela Zevallos-Porles, 2019. "Sender-Receiver Games with Endogenous Ex-Post Information Acquisition: Experimental Evidence," Working Paper series, University of East Anglia, Centre for Behavioural and Experimental Social Science (CBESS) 19-04, School of Economics, University of East Anglia, Norwich, UK..
    2. Sascha Behnk & Iván Barreda-Tarrazona & Aurora García-Gallego, 2018. "Punishing liars—How monitoring affects honesty and trust," PLOS ONE, Public Library of Science, vol. 13(10), pages 1-30, October.
    3. Kartal, Melis & Tremewan, James, 2018. "An offer you can refuse: The effect of transparency with endogenous conflict of interest," Journal of Public Economics, Elsevier, vol. 161(C), pages 44-55.
    4. Vera Angelova & Tobias Regner, 2016. "Can a Bonus Overcome Moral Hazard? An Experiment on Voluntary Payments, Competition, and Reputation in Markets for Expert Services," SFB 649 Discussion Papers SFB649DP2016-027, Sonderforschungsbereich 649, Humboldt University, Berlin, Germany.
    5. Sascha Behnk & Iván Barreda-Tarrazona & Aurora García-Gallego, 2017. "An experimental test of reporting systems for deception," Working Papers 2017/11, Economics Department, Universitat Jaume I, Castellón (Spain).
    6. Behnk, Sascha & Barreda-Tarrazona, Iván & García-Gallego, Aurora, 2019. "Deception and reputation – An experimental test of reporting systems," Journal of Economic Psychology, Elsevier, vol. 71(C), pages 37-58.
    7. Angelova, Vera & Regner, Tobias, 2018. "Can a bonus overcome moral hazard? Experimental evidence from markets for expert services," Journal of Economic Behavior & Organization, Elsevier, vol. 154(C), pages 362-378.

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    More about this item

    Keywords

    Information transmission; Deception; Transparency; Social image; Experiment;
    All these keywords.

    JEL classification:

    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • D03 - Microeconomics - - General - - - Behavioral Microeconomics: Underlying Principles
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design

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