Complex Disclosure
Published Version
https://doi.org/10.1287/mnsc.2021.4037Metadata
Show full item recordCitation
Jin, Ginger Zhe, Michael Luca, and Daniel Martin. "Complex Disclosure." Management Science 68, no. 5 (May 2022): 3236–3261.Abstract
We present evidence that unnecessarily complex disclosure can result from strategic incentives to shroud information. In our laboratory experiment, senders are required to report their private information truthfully but can choose how complex to make their reports. We find that senders use complex disclosure more than half the time. This obfuscation is profitable because receivers make systematic mistakes in assessing complex reports. Regression and structural analysis suggest that these mistakes could be driven by receivers who are naive about the strategic use of complexity or overconfident about their ability to process complex information.Terms of Use
This article is made available under the terms and conditions applicable to Open Access Policy Articles, as set forth at http://nrs.harvard.edu/urn-3:HUL.InstRepos:dash.current.terms-of-use#OAPCitable link to this page
https://nrs.harvard.edu/URN-3:HUL.INSTREPOS:37374629
Collections
- HBS Scholarly Articles [838]
Contact administrator regarding this item (to report mistakes or request changes)