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"Where Ignorance is Bliss, 'tis Folly to be Wise": Transparency in Contests

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  • Denter, Philipp

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  • Morgan, John

    ()

  • Sisak, Dana

    ()

Abstract

Increasingly, lobbying groups are subject to transparency requirements, obliging them to provide detailed information about their business. We study the effect this transparency policy has on the nature of lobbying competition. Under mild conditions, mandated transparency leads to an increase in wastefulness of lobbying competition and a decline in expected allocative efficiency. Hence we identify a negative side-effect of transparency policy, which also has implications for various other fields such as political campaigning or firm competition.

Suggested Citation

  • Denter, Philipp & Morgan, John & Sisak, Dana, 2011. ""Where Ignorance is Bliss, 'tis Folly to be Wise": Transparency in Contests," Economics Working Paper Series 1128, University of St. Gallen, School of Economics and Political Science.
  • Handle: RePEc:usg:econwp:2011:28
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    File URL: http://ux-tauri.unisg.ch/RePEc/usg/econwp/EWP-1128.pdf
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Denter, Philipp & Sisak, Dana, 2015. "Do polls create momentum in political competition?," Journal of Public Economics, Elsevier, vol. 130(C), pages 1-14.
    2. Philipp Denter & Dana Sisak, 2010. ""Who's the thief?": Asymmetric Information and the Creation of Property Rights," University of St. Gallen Department of Economics working paper series 2010 2010-27, Department of Economics, University of St. Gallen.
    3. Baumann, Florian & Denter, Philipp & Friehe, Tim, 2013. "Hide or show? Endogenous observability of private precautions against crime when property value is private information," DICE Discussion Papers 115, University of Düsseldorf, Düsseldorf Institute for Competition Economics (DICE).
    4. repec:spr:joecth:v:63:y:2017:i:4:d:10.1007_s00199-016-0974-3 is not listed on IDEAS
    5. Shitovitz, Benyamin & Moreno Ruiz, Diego & Einy, Ezra, 2014. "The value of public information in common value Tullock contests," UC3M Working papers. Economics we1401, Universidad Carlos III de Madrid. Departamento de Economía.
    6. Dmitry Ryvkin & Mikhail Drugov, 2017. "Tournaments," Working Papers wp2017_03_02, Department of Economics, Florida State University.
    7. Ezra Einy & Diego Moreno & Benyamin Shitovitz, 2014. "The Value of Public Information in Common-Value Tullock Contests," Working Papers 1408, Ben-Gurion University of the Negev, Department of Economics.
    8. Denter, Philipp & Sisak, Dana, 2013. "Do Polls Create Momentum in Political Campaigns?," Economics Working Paper Series 1326, University of St. Gallen, School of Economics and Political Science.
    9. Drugov, Mikhail & Ryvkin, Dmitry, 2017. "Winner-Take-All Tournaments," CEPR Discussion Papers 12067, C.E.P.R. Discussion Papers.
    10. Christian Ewerhart & Julia Grünseis, 2018. "Voluntary disclosure in unfair contests," ECON - Working Papers 279, Department of Economics - University of Zurich.

    More about this item

    Keywords

    Transparency Policy; Rent-seeking Contests; Information Disclosure; Value of Ignorance;

    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • L12 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Monopoly; Monopolization Strategies

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