New Frontiers in Law and Economics: Optimal (Non-)Disclosure Defaults

Sellers are generally required to disclose “negative” information about hidden defects of the products they sell. By contrast, buyers are generally under no comparable duties to disclose “positive” information about hidden qualities of the products they buy. In this paper, we develop a model and study the incentives created by disclosure and non-disclosure rules.

A lecture held by Prof. Ram Singh, Professor of economics and director of Delhi School of Economics, University of Delhi.