Optional disclosure and observational learning

B-Tier
Journal: Journal of Economic Behavior and Organization
Year: 2025
Volume: 229
Issue: C

Authors (4)

Peng, Diefeng (not in RePEc) Rao, Yulei (not in RePEc) Sun, Xianming (not in RePEc) Xiao, Erte (Monash University)

Score contribution per author:

0.503 = (α=2.01 / 4 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We examine how allowing individuals to self-determine whether to disclose their behavior to others can mitigate the disruptive effect of information cascades on the efficiency of observational learning. We theoretically analyze various disclosure strategies and show that observational learning can be more efficient under the optional disclosure condition if decision-makers adopt a selective disclosure strategy. However, data from a controlled laboratory experiment suggest that spontaneous disclosure decisions are not sufficiently selective. As a result, optional disclosure fails to increase learning efficiency. We further demonstrate that providing public information about the effects of disclosure behavior on others significantly improves learning outcomes.

Technical Details

RePEc Handle
repec:eee:jeborg:v:229:y:2025:i:c:s0167268124004311
Journal Field
Theory
Author Count
4
Added to Database
2026-01-29