We show that information exchange via disclosure is possible in equilibrium even when it is certain that whenever one party learns the truth, the other loses. The incentive to disclose results either from an expectation of disclosure being reciprocated - the quid pro quo motive - or from the...

We consider the trade-off between imperfect control and communication in organizations. A principal anticipates receiving private information and hires an agent to take an action for her. She has the ability to contractually tie the agent's action to the state, but this control is incomplete....