The Failure of Mandated Disclosure
Author:
Abstract
This chapter presents evidence showing that mandate disclosure consistently fails to accomplish its stated goals. It begins by asking what standard we should use to assess mandated disclosure and goes on to apply the standard that lawmakers and disclosurites set for it. The chapter then reviews empirical studies of disclosure's success as well as results from laboratory experiments that attempt to make disclosure work with research subjects. It also considers signs of deteriorating faith in disclosure among some sophisticated lawmakers and commentators. The chapter shows that some lawmakers have doubts about mandates so they reform them so often and so much, while regulators are expressly critical. Based on the evidence, it shows that mandated disclosure is a regulatory device thats ambitions outweigh its abilities.
Publisher
Princeton University Press
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