By: Ruppel, Fred J.; Fuller, Stephen W.
Laboratory experimentation was used to assess the impacts of information disclosure in imperfect markets. A dual oligopoly market structure was designed with contract information disclosed to subjects under three treatments: no, partial, and full disclosure. Regression analysis revealed some increase in selling price with full information disclosure, but no discernable effects on negotiated prices with partial disclosure. Alternative specifications showed large traders earning significantly lower profits, and information on large traders significantly beneficial to both buyers and sellers. Probit analysis of information selection determinants revealed no significant economic content in trader requests for information under partial disclosure.