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The Efficacy of Information Policy: A Review of Archon Fung, Mary Graham, and David Weil's Full Disclosure: The Perils and Promise of Transparency

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  • Clifford Winston

Abstract

The economics of information has identified an important role for government to correct situations where competition is not sufficient to reveal valuable information to consumers. Archon Fung, Mary Graham, and David Weil's Full Disclosure: The Perils and Promise of Transparency provides a thorough discussion of government-mandated disclosure policies. I use their book to frame an empirical assessment of whether these—and other information policies—have significantly reduced the costs to consumers created by imperfect information. My conclusion, which calls for more research, is that government information policies have amounted to weak solutions in search of a problem.

Suggested Citation

  • Clifford Winston, 2008. "The Efficacy of Information Policy: A Review of Archon Fung, Mary Graham, and David Weil's Full Disclosure: The Perils and Promise of Transparency," Journal of Economic Literature, American Economic Association, vol. 46(3), pages 704-717, September.
    • Handle: RePEc:aea:jeclit:v:46:y:2008:i:3:p:704-17
    Note: DOI: 10.1257/jel.46.3.704
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    Cited by:

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    3. Erica Myers & Steven L. Puller & Jeremy D. West, 2019. "Effects of Mandatory Energy Efficiency Disclosure in Housing Markets," NBER Working Papers 26436, National Bureau of Economic Research, Inc.
    4. James M. Lacko & Janis K. Pappalardo, 2010. "The Failure and Promise of Mandated Consumer Mortgage Disclosures: Evidence from Qualitative Interviews and a Controlled Experiment with Mortgage Borrowers," American Economic Review, American Economic Association, vol. 100(2), pages 516-521, May.
    5. Seth Freedman & Melissa Kearney & Mara Lederman, 2012. "Product Recalls, Imperfect Information, and Spillover Effects: Lessons from the Consumer Response to the 2007 Toy Recalls," The Review of Economics and Statistics, MIT Press, vol. 94(2), pages 499-516, May.
    6. Melo, Grace & Palma, Marco A. & Ribera, Luis A., 2024. "Are experts overoptimistic about the success of food market labeling information?," 2024 Annual Meeting, July 28-30, New Orleans, LA 343870, Agricultural and Applied Economics Association.
    7. Andrea La Nauze & Erica Myers, 2023. "Do Consumers Acquire Information Optimally? Experimental Evidence from Energy Efficiency," NBER Working Papers 31742, National Bureau of Economic Research, Inc.
    8. Cassandra Handan-Nader & Daniel E. Ho & Becky Elias, 2020. "Feasible Policy Evaluation by Design: A Randomized Synthetic Stepped-Wedge Trial of Mandated Disclosure in King County," Evaluation Review, , vol. 44(1), pages 3-50, February.
    9. Paul Lindhout & Genserik Reniers, 2022. "The “Transparency for Safety” Triangle: Developing a Smart Transparency Framework to Achieve a Safety Learning Community," IJERPH, MDPI, vol. 19(19), pages 1-21, September.
    10. Henze, B., 2016. "Laboratory experiments on the regulation of European network industries," Other publications TiSEM b18fcfca-2b95-4b01-91e2-0, Tilburg University, School of Economics and Management.
    11. Wolfe, Robert, 2013. "Letting the sun shine in at the WTO: How transparency brings the trading system to life," WTO Staff Working Papers ERSD-2013-03, World Trade Organization (WTO), Economic Research and Statistics Division.

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    More about this item

    JEL classification:

    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • D18 - Microeconomics - - Household Behavior - - - Consumer Protection

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