From Design to Disclosure

S. Nageeb Ali, Andreas Kleiner and Kun Zhang

Papers from arXiv.org

Abstract: This paper studies the role of hard information in contractual and market settings in which the receiver can flexibly adjust allocations and transfers in response to the sender's disclosure. These settings include monopoly pricing, bilateral trade with interdependent values, insurance contracting, and policy negotiations. Across these settings, the sender is worst off if she reveals her type completely: if her type becomes known, the receiver can adjust the terms of trade to extract her surplus. Taking this feature as our central departure from the literature, we characterize the entire set of equilibrium payoffs across these disclosure games. We establish an equivalence result: every payoff profile that can be achieved through information design can also be approximated by an equilibrium of the disclosure game. Thus, hard information enables the sender to attain her commitment payoff without having to commit to an information structure. Moreover, this result highlights how verifiability can empower the sender in settings in which bargaining power resides with the receiver.

Date: 2024-11, Revised 2026-01
New Economics Papers: this item is included in nep-com, nep-des, nep-gth and nep-mic
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://arxiv.org/pdf/2411.03608 Latest version (application/pdf)

Related works:
Working Paper: From Design to Disclosure (2025)
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: https://EconPapers.repec.org/RePEc:arx:papers:2411.03608

Access Statistics for this paper

More papers in Papers from arXiv.org
Bibliographic data for series maintained by arXiv administrators ().