Voluntary disclosure under imperfect competition: Experimental evidence
Lucy Ackert (),
Bryan K. Church and
Mandira Roy Sankar
No 98-7, FRB Atlanta Working Paper from Federal Reserve Bank of Atlanta
This study investigates disclosure behavior when a manager has incentives to influence the actions of a product market competitor in a Cournot duopoly. Theoretical research suggests that under various conditions the manager has incentives to withhold some signals and disclose others. Using an experimental economics method, we find support for partial information disclosure. Our results suggest that when the manager receives private information about industrywide cost, unfavorable (favorable) information is disclosed (withheld) and the competitor adjusts production accordingly. In contrast, when the manager receives private information about firm-specific cost, disclosure behavior is not affected by the favorableness of the information and the competitor's production decision is invariant to the disclosure choice.
Keywords: Information theory; Microeconomics (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-exp and nep-gth
References: View references in EconPapers View complete reference list from CitEc
Citations Track citations by RSS feed
Published in International Journal of Industrial Organization, January 2000
Downloads: (external link)
Our link check indicates that this URL is bad, the error code is: 404 Not Found (http://www.frbatlanta.org//filelegacydocs/wp9807.pdf [301 Moved Permanently]--> https://www.frbatlanta.org/filelegacydocs/wp9807.pdf)
Journal Article: Voluntary disclosure under imperfect competition: experimental evidence (2000)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:fip:fedawp:98-7
Ordering information: This working paper can be ordered from
Access Statistics for this paper
More papers in FRB Atlanta Working Paper from Federal Reserve Bank of Atlanta Contact information at EDIRC.
Series data maintained by Elaine Clokey ().