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Unfavorable news are often delivered under the disguise of vagueness. Our theory-driven laboratory experiment investigates this strategic use of vagueness in voluntary disclosure and asks whether there is scope for policy to improve information transmission. We find that vagueness is profitably...
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truthful communication can be promoted by the threat of ex-post disclosure, even in the absence of financial consequences. Our … doubles the incidence of truth-telling. Interestingly, the effect of ex-post disclosure on truthful communication is present …
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