Firms do not typically disclose information on their costs to produce a good to consumers.However, we provide evidence of when and why doing so can increase consumers' purchase interest. Specifically, building on the psychology of disclosure and trust, we posit that cost transparency, insofar as...

Things change. Things also get changed—often. Why? The obvious reason is that revising things often makes them better. We document a less obvious reason: revising things makes consumers think they are better, even absent objective improvement. Eleven studies document the preference for...