Four What Makes Transparency Work? (ith en Fagot) 1a Los Angeles County, atin he cali, public eth igpctors vst resauans to make sure they comply wih loa hygiene cas lat omits howevet the infomatan they cll locked aay in go {eament es Inf, spection ele ar post in searchable toni dhnabses that foresight and techs restaurant goers mty le 0 aces. But Los Angeles County oes mh farer Sine 199, retaarat anager there ate ben reied opt in thet windows eter pad ranging fom Ato C that reflcts the rel of thelr most een yen Inspection Wool be patrons sin cl the publ elie a vit 2 Website. A glance atte restarat storefront all them ow len ts ules the corporat tht information into ne of the mo! common fail desons figuring ou where to x” These restaurant hygiene rept veces owe incentives for resaurateusto dean upthe premier Eri ese find spc ‘even inerenesfor evra with igh rade and reve ders ft yada staurans (a power ef), More portant, eset ea sogstthatthepolcyhasausedamesraabeinrensincesaurathypiene nda gicant opin hospitalizations tam food ated ests (ocest Signofefetvene. thas more informed choices by consumes pps to ‘be improvng restaurant canines, rearing retirees who practice ood hygiene, and simulating anew dimension of bene ompeton {mong restaurants? “This restaurant rang system seats bow athooghtfl publ pir an generate nfraton that pose hl topple inthe ee ‘ay deisons. What makes the Las Angles County stem accel? Mote genely wat spate th traspaency poli that sted fom A Comples Chin Reaction Pn ‘hos tha fal nhs chaps, wetryto nave tee guetionsby examining ‘ight major US. targeted vanapreey pices corporate innate, ng estucant hypine distaste, mortage lending dono mena Inbelng, x potation reporting, woklace ztdous chemicals dil ‘patent say eporcng, and plant closing reporting chown Table 1 ‘nd explored in stbsequnt ables)? ‘efocuson his subset he fal database of plc case me ean ake sdvantge of sgitcant body of quanta poligeskatins and other Ierature that has developed in recent yar Although thee erfutons examine pec polices, they prviseur with nen ook deeply tthe sroscuting dives ofsceesThusthe aight poies provides partially ‘Sarp means of easing the feces of tase raspteacy. ‘As ete sen altageed transparency police aecetinundedying es exes However itathewriaions inthe designand the robles \heyaditesthatshapetherevlutanandsitinatlybelptodtemine iit sce rare ‘A COMPLEX CHAIN REACTION te oter forms of regulation, asspareny ples sim to change the bir finvdual and orgoizatonsia ways tat aly ier waladvancthepublciterest Bat notlltansareny poles achieve is objective In thi ans we divide ragpateny oles into tne eae vies (A) Some transparency polices fat er bhai case feat on the inrmaton they generate. (©) Othe policies alter the bebavior finda o organizations, but ‘ot ese in ways that ar consent with plc bjectives. (© Silote policies ater beavor ny that ulimatlyavanee oe Pic ple objec Teanspureney plc ctegory (C)aresucsu whilethosela caters (A) and (8) ae flares or ae only marginally fei 1 strate, consider the ptetionl labeling of puchaged foods man ated by Congress in 1990 wih the gol of sing the kof hear i ‘se cane and other chronicles Suppose shopper eponded the "aay of ttn infrmation on packaged cokis by continsinge ‘hoon cookies Based oly on pie and at, with orp for hem ton dla provided under the poi In thie the oly would fl ats category (A) and be deemed re.‘son ces teem i B i Tei tra semgice Maceo Yancey i i : i “RBA, Onion f Bi ele Tanga e A Comples Chain Ration 2 Suppose shoppers respondedbysichingto cookie that ere sewhat Joweinsogarbuthiherinsatarted ft. Or spose hey evthedo cook ses that were foe in both sat and ft bu ered hi consimption of cols enough to more than offi he hath benef la thee sen ‘util labeling would dave ad et on consumer bev bt srould nat ave frtheredthe poly simf reducing heart dune The po {ey woul flint category (8) in that thd an econ bho bat mas ote, ‘Butifshoppers pnd by choosing cookies ow ina an fi and thereby icrened the healt of thi overlies the poly wold fla estegry () and woul jude to be sacs fm examining ‘urinveatory of rarspareney pce therefore we mst ek oth hehe ‘ew information changes ser and dase bebsvar and whether does Solis way that mows tt behavior ins dese policy detion, ‘As we have note, simply placing information inthe plc domain oes not guarantee that wil be io or wad wisely and (poups responss to information ae ineparale fom thi nee, esis resores cognitive cpactey al scl contents Owing to these tnd the fete, people may ignore information misunderstand or rsase i? Whether and how aw information uso farther pbc bjectvs depends upon ts incorporation into complex hans fear Detsion ston, and sponse Tn aniatency stems thot hia of ction ad sponses have two prlimy aca: ave wo ae compel by pic polices to prove tat {sformation nd whose bebavon poles pet change closes, tnd hose who rece th ew information proc by transparency pol ‘iesand whore choices pleymalers hope to inpove (se). These nor Inston ditdons and wer oe fypcly connect na ston ee (ce Pipwe a)? "When dielosersprovieinformtionvlunarly to customer aver and employees tough averting, eprtso other mens, a shawn on ‘hele ie fthe pram usrsand loser se lke trough amacon cyethatconcetalybepinewththeprorsonefinformationty docks, ‘opotental wer Vers drew oninformation that hey ind relent wich lec tee pcxpios about the produc serve, o outcome of once tnd in tur afr thei ston or behavior User behavior changes lor ‘ample, purchases of new “ey” ac) are interpreted by dose, ‘who may aut ther behavior on the ba of wer sty uch a by Producing more a fever heathy pod lps in response consumer referee)* What Mates Taare Wek? = oo a 2 | comaln] co ee atl el 1 1. foe) S| - ee} oh eG we Tage angen Aton de AsChaptr2dserbed thre ae many ncentvesor diserst provide lesan-complt information so that the action je produces han ‘he socily dered tenes. Targeted tanipateny police stamp 0 eleosthereutinginorton ayant inorder reer pubis {ndimprovepoblcserices As depitdontheright sie of Figure sch Poli compel eorprationspoernment sence. or ater ogo {provide information sbout tz practices or products to the pubes lag. hit adltonal information rel acebl, nd nero by consumers avers employes, eommuniy eden or ther india ‘rproups they mayincnrporate into thei dcson making process ways tt ae th actions. The gl dlors finormaton nur, ‘heer the changed choice of inermaton wer anf police are ‘roc espond by lrg pacer and produto reduce puberisks orimproveservies. “The ation ele an be ued to deste the fet and lftvenet of transparency pois across ais ple domsis as olloms pias essen information tproduesemers te cculusofwsersang they “aneeuently hang hi ations. Pare fects may flow wen infor ‘ato dlsdosers ote and respond to wer sions Aste Isat, however onl wen doe responses sigan vate poly ins ews assume ht becuse ofa argeted tansparency poi anew body of aloe and sca information tablet the public Whether and Ne ein Ebola Ue econ 8 thw people respond otha lfomation depend an ow ey i itsinto ‘ha outne ways of making choles, "Ac we have en, the concept of bounded rationality hls explain the limitations of pis econ making” People want to act tatenly to advance their varius, aly selitereted nds But bees they are ‘ligt ave ony 0 ch ine and tention (and ight a), hey don't ek out ale the information nce to make ptinal dso Instead hey try ome decison hat ze oo enn sng netted rules of thumb. (Bconmist cll his tii) Only information tat entra these somtimes severe economies of decom miking lets {her ealclations sod actions Transparency sstes le declons only when they provide pertinent Information hat rable peopleto subtetnlyinprone tee hoes wth ‘utimposing siuiicant addtional cst That noe eon dines ate mote lly use the window ont pradrin Los Angee an interest datases ih similar information: the added cst of bing new information in me, nergy, and planning is very low. "When ne nforation becomes pat of wer deison-mkng soins, ‘esata it isemboed in se decom, or transparency tems 10 De ‘ect iscesary bt not scent tht norton bec cb ed in esting decision naling proces rnboided information i not tfc for effeciveness beats conflicting preteens, cogete hal lenges and other contin may tl kept om aking aon that farther pipe objectives "Wht determines wheter information wil ecome embod in se? cision sing? We ave dented thee hey tors + thelnformato’s peeved vale achieving tego + itscomptility wih use decson-maling outins ad + iscomprehenshiiy et ocsider thee factor in bt nore dtl. Value ‘aw peopl spend tine nd nergy obtaining infomation fori on ke -Mostprope most perei tha thelaoration lle vakalcinehiving thar goal. We ate that thundering oa of es are ot ced by most wanparency stems. Thre are nstancs, however, ere neni dation, tenn. or widely publied cre change preference hence am atompanyng transpareney syste can help users act on those canged Preferences The Enon and Wsldcomcorporteseandalrandno mong