Alycia Chin, Dustin Beckett - To help people make informed decisions, policymakers often institute disclosure requirements. We examine two factors that may affect informed decision making when using disclosures: the mere presence of an observer and a mandatory waiting period after receiving a disclosure. In Study 1, we experimentally manipulate these factors together, finding that reading a disclosure alone with a waiting period leads to an increase in informed decision making from 5% to 35%. In Study 2, we find that conditional on having a waiting period, removing an observer increases informed decision making from 13% to 33%. In Study 3, we examine surveys from homebuyers, finding a correlation between receiving documents at closing and reluctance to ask questions. Our findings have implications for public policy that relies on disclosure.
