Governance externalities from mandatory disclosure regulation

Supreme Court Justice Louis Brandeis famously proclaimed in 1914 that “sunlight is the best of disinfectants.” Today, scholars, policymakers, and regulators commonly hold a related belief that mandatory disclosures can improve markets’ transparency and effectiveness. Typically, these thinkers believe disclosure-based regulation is superior to rules-based alternatives (e.g., Dalley 2007; Etzioni, 2010). The advantage of a disclosure-based approach over […]