Corporations Can Fully Extract Consumers' Surplus Through Manipulative Information Disclosure
In the research, scientists explored how to design systems where a boss can reveal extra secret details to workers about how much they treasure things. They found that if the workers' initial secret thoughts only change their opinions, not their values, the boss can take all the available surplus of information. If the workers' first secretive beliefs follow a special rule, the boss can still grab all the valuable information. This study suggests that in specific situations, bosses can use secret information-sharing to get the most out of what their workers know.