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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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    Citations

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    Cited by:

    1. repec:gam:jgames:v:9:y:2018:i:2:p:23-:d:145540 is not listed on IDEAS
    2. Ginger Zhe Jin & Michael Luca & Danie lMartin, 2015. "Is No News (Perceived as) Bad News? An Experimental Investigation of Information Disclosure," Harvard Business School Working Papers 15-078, Harvard Business School, revised Nov 2017.
    3. Jeanne Hagenbach & Frédéric Koessler, 2017. "Simple versus rich language in disclosure games," Review of Economic Design, Springer;Society for Economic Design, vol. 21(3), pages 163-175, September.
    4. repec:kap:jcopol:v:40:y:2017:i:2:d:10.1007_s10603-016-9337-5 is not listed on IDEAS
    5. Hagenbach, Jeanne & Perez-Richet, Eduardo, 2018. "Communication with evidence in the lab," Games and Economic Behavior, Elsevier, vol. 112(C), pages 139-165.
    6. Schwardmann, Peter & Ispano, Alessandro, 2016. "Competitive pricing and quality disclosure to cursed consumers," Annual Conference 2016 (Augsburg): Demographic Change 145573, Verein für Socialpolitik / German Economic Association.
    7. Jos Jansen & Andreas Pollak, 2015. "Strategic Disclosure of Demand Information by Duopolists: Theory and Experiment," Discussion Paper Series of the Max Planck Institute for Research on Collective Goods 2015_09, Max Planck Institute for Research on Collective Goods.
    8. Elisabetta Cornago & Luisa Dressler, 2018. "Incentives to (not) Disclose Energy Performance Information in the Housing Market," Working Papers ECARES 2018-34, ULB -- Universite Libre de Bruxelles.
    9. Ertac, Seda & Koçkesen, Levent & Ozdemir, Duygu, 2016. "The role of verifiability and privacy in the strategic provision of performance feedback: Theory and experimental evidence," Games and Economic Behavior, Elsevier, vol. 100(C), pages 24-45.
    10. repec:eee:jeborg:v:162:y:2019:i:c:p:1-23 is not listed on IDEAS
    11. Benjamin B. Bederson & Ginger Zhe Jin & Phillip Leslie & Alexander J. Quinn & Ben Zou, 2018. "Incomplete Disclosure: Evidence of Signaling and Countersignaling," American Economic Journal: Microeconomics, American Economic Association, vol. 10(1), pages 41-66, February.
    12. repec:eee:jeborg:v:161:y:2019:i:c:p:323-342 is not listed on IDEAS
    13. Ertac, Seda & Gümren, Mert & Koçkesen, Levent, 2019. "Strategic feedback in teams: Theory and experimental evidence," Journal of Economic Behavior & Organization, Elsevier, vol. 162(C), pages 1-23.

    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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