Targeting Transparency

When rules, taxes, or subsidies prove impractical as policy tools, governments increasingly employ “targeted transparency,” compelling disclosure of information as an alternative means of achieving specific objectives. For example, the U.S. Affordable Care Act of 2010 requires calories be posted on menus to enlist both restaurants and patrons in the effort to reduce obesity. It is crucial to understand when and how such targeted transparency works, as well as when it is inappropriate. Research about its use and effectiveness has begun to take shape, drawing on social and behavioral scientists, economists, and legal scholars. We explore questions central to the performance of targeted transparency policies.