From design to disclosure

• Department of Economics

This seminar features a discussion with Professor S. Nageeb Ali (Penn State University).

This paper presentation studies games of voluntary disclosure in which a sender discloses evidence to a receiver who then offers an allocation and transfers. We characterise all equilibrium payoffs using information design as a tool. Our main result establishes that any payoff profile that can be achieved through information design can also be supported by an equilibrium of the disclosure game. Hence, our analysis suggests an equivalence between disclosure and design in this setting. We apply our results to monopoly pricing, trading financial assets, insurance markets, and policy negotiations.

Co-authors: Andreas Kleiner, Kun Zhang.