Economics at your fingertips  

Information acquisition and the value of bad news

Alessandro Ispano

Games and Economic Behavior, 2018, vol. 110, issue C, 165-173

Abstract: An interested party who controls both the acquisition and the transmission of information may find it optimal to disclose her evidence even when it is unfavorable. At the same time, the public does not necessarily make better decisions when there is more disclosure. The model provides a rationale for voluntary adverse announcements such as product recalls and earning warnings and implications for disclosure laws.

Keywords: Persuasion; Adverse disclosure; Testing; Disclosure laws (search for similar items in EconPapers)
JEL-codes: C72 D82 D83 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link)
Full text for ScienceDirect subscribers only

Related works:
Working Paper: Information acquisition and the value of bad news (2013) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Access Statistics for this article

Games and Economic Behavior is currently edited by E. Kalai

More articles in Games and Economic Behavior from Elsevier
Bibliographic data for series maintained by Dana Niculescu ().

Page updated 2019-09-17
Handle: RePEc:eee:gamebe:v:110:y:2018:i:c:p:165-173