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Strategic Disclosure of Demand Information by Duopolists: Theory and Experiment
Social Science Research Network
We study the strategic disclosure of demand information and product-market strategies of duopolists. In a setting where both firms receive information with some probability, we show that firms selectively disclose information in equilibrium in order to influence their competitor's product-market strategy. Subsequently, we analyze the firms' behavior in a laboratory experiment. We find that subjects often use selective disclosure strategies, and this finding appears to be robust to changes indoi:10.2139/ssrn.2637893 fatcat:vexl5ajccreulnfexsxpvs3xey