In some instances, the existence of hard information is the informed party’s private
information (e.g., the seller knows what receipts she has) and in others it is commonly
known (e.g., a college graduate can produce a transcript). When existence is commonly
known, it may be difficult for the informed party to conceal her/his hard information
due to the unraveling argument of Grossman (1981): the uninformed party’s expecta-
tion of the information conditional on concealment is necessarily less than the true
value for some informed players; hence, those players, who are presumably concealing, ...
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