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The research aims to compare the effects of mandatory versus voluntary disclosure of product risk information in a competitive market setting.

May 17, 2026Economics LettersOpen Access

Mandatory vs. voluntary disclosure of product risk information: The roles of observability, product liability, and product-risk correlation

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Randomized trial compares product risk disclosure methods, suggesting mandatory rules enhance learning.

The research aims to compare the effects of mandatory versus voluntary disclosure of product risk information in a competitive market setting.
Analyzed incentives under Cournot competition with a focus on product liability and correlated risks.
Investigated the effects of observable learning efforts on acquisition incentives.
Examined the nature of disclosure regimes along a continuum from mandatory to voluntary.
Identified that opacity feedback from silence can reduce acquisition incentives.
Found that voluntary disclosure leads to less learning compared to mandatory disclosure.
Determined a neutrality locus where market beliefs do not influence payoff.

Friehe et al. (2026) studied this question.

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