Voluntary Disclosure: The Context Dependency of the Unraveling Result

The unraveling result identifies conditions under which senders who possess private information voluntary disclose all their private information. This paper puts the unraveling result and its underlying conditions in separate models with an identical context, in order to test their validity. These models show how the underlying conditions are individually shaped and only hold in their own specific contexts. In the context built in this paper, two conditions are unable to reject the unraveling result, suggesting that not all conditions are necessary for the unraveling result to hold in every possible context. This also implies that the unraveling result is not a closed book and requires further research in order to become a valid part of the theory on voluntary disclosure.