In some cases, the costs of increased transparency outweigh the benefits.
The principles of transparency and disclosure are visible everywhere from fast-food menus to financial regulation. But if lawmakers don’t consider the behavior of both markets and consumers, better information may not translate to smarter shoppers.
Policymakers have succeeded in using financial regulation to effect nonfinancial change.
Government oversight and regulation is routinely disparaged in boardrooms, but critics may want to reconsider their stance.