Disclosure is everywhere. Sellers are required to disclose information about what we eat, what we wear, what we drive, what we borrow, and more. Indeed, disclosure mandates are perhaps the most commonly used regulatory tool. And yet the science of disclosure is in its infancy. For a long time, policymakers were content to just pile on more information, without giving much thought to how this information will be used by consumers, or if they will use it at all. But things are changing. Guided by behavioral economics, policymakers are beginning to think more carefully about the optimal design of disclosure mandates. This new generation of disclosure mandates is more effective and more powerful. Indeed, the enhanced power of disclosure casts fresh doubts on the traditional view of disclosure mandates as a soft, market-facilitating regulatory tool. This session will explore the future of disclosure—its promise and its perils.
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