What question did this study set out to answer?

This framework seeks to understand when missing information provides meaningful insights rather than leading to misinformation.

June 9, 2026Open Access

View Full Paper

Informative Absence Under Information Asymmetry The Expectation–Absence Detection–Inference (EADI) Model A Conceptual Framework

CZChris Zhou

Key Points

This framework seeks to understand when missing information provides meaningful insights rather than leading to misinformation.
Developed the Expectation–Absence Detection–Inference (EADI) model to analyze absence-based inference.
Broke down absence detection into stages: expectation formation, noticing violations, and validating absence.
Examined implications for Taiwanese firms using the EADI framework.
Demonstrated that shared defensible expectations can enhance inference accuracy when norms are aligned.
Highlighted that differing institutional norms can lead to over-inference and false alarms in absence detection.
Validated the EADI model as a practical tool for interpreting informative absence in business evaluations.

Abstract

Most research on evaluation under information asymmetry asks about what is there. This paper turns the question around: when does missing information actually tell you something? It brings together disclosure economics, audit methodology, and intelligence analysis to formalise the Expectation–Absence Detection–Inference model, the EADI model. The model breaks absence-based inference into three stages: forming a defensible expectation, noticing it has been violated, and then the hard part, validating whether that absence really signals low quality. The central claim is a paradox. Defensible expectations improve accuracy when norms are shared. Across institutional boundaries, though, they amplify over-inference. The mechanism is epistemic confidence: the stronger the expectation, the less likely the evaluator checks whether the counterpart actually shares the norm. The sharedness check gets skipped. Validation gets skipped. A false alarm follows. For Taiwanese firms, the EADI framework offers a practical way to read informative absence, without falling into either over-trust or excessive suspicion. Keywords: Informative absence, expectation formation, voluntary disclosure, completeness assertion, information asymmetry

Ask AI

Helpful

Bookmark

View Full Paper

Ask AI

Helpful

Bookmark

View Full Paper

Informative Absence Under Information Asymmetry The Expectation–Absence Detection–Inference (EADI) Model A Conceptual Framework

Key Points

Abstract

Cite This Study