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Disclosure of research results: the cost of proving your honesty

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  • Emeric Henry

    (ECON - Département d'économie (Sciences Po) - Sciences Po - Sciences Po - CNRS - Centre National de la Recherche Scientifique)

Abstract

In situations where a biased sender provides verifiable information to a receiver, I study how strategic reporting affects the incentives to search for information. Research provides series of signals that can be used selectively in reporting. I show that the sender is strictly worse off when his research effort is not observed by the receiver: he has to conduct more research than in the observable case and in equilibrium, discloses all the information he obtained. However this extra research can be socially beneficial and mandatory disclosure of results can thus be welfare reducing. Finally I identify cases where the sender withholds evidence and for which mandatory disclosure rules become more attractive.

Suggested Citation

  • Emeric Henry, 2009. "Disclosure of research results: the cost of proving your honesty," SciencePo Working papers Main hal-01023670, HAL.
    • Handle: RePEc:hal:spmain:hal-01023670
    DOI: 10.1111/j.1468-0297.2009.02265.x
    Note: View the original document on HAL open archive server: https://sciencespo.hal.science/hal-01023670
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    References listed on IDEAS

    as
    1. Van Zandt, Timothy & Vives, Xavier, 2007. "Monotone equilibria in Bayesian games of strategic complementarities," Journal of Economic Theory, Elsevier, vol. 134(1), pages 339-360, May.
    2. Bennedsen, Morten & Feldmann, Sven E., 2006. "Informational lobbying and political contributions," Journal of Public Economics, Elsevier, vol. 90(4-5), pages 631-656, May.
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    5. Morten Bennedsen & Sven E. Feldmann, 2002. "Lobbying Legislatures," Journal of Political Economy, University of Chicago Press, vol. 110(4), pages 919-948, August.
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    persuasion games; search for information; mandatory disclosure; clinical trials;
    All these keywords.

    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
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health

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