If this is true, then LEV should not be a good substitute for IC disclosure as banks may not be effective in mitigating the information asymmetry between the firm and its stakeholders.
As discussed above, if we properly choose the range R, the randomness in the ciphertext selection process will effectively mitigate the useful information revealed to the cloud server.
Within this framework, one of the core hypothesis made by industrial (and financial economists) is that strategic disclosure of private information is likely to mitigate the effects of information asymmetries (Stiglitz and Weiss 1981; Bhattacharya and Ritter 1983).
A framework of trust built into the Internet regarding personal information will mitigate the amount of private information making its way onto the web.
It can reduce the search efforts of engineers and mitigate the encumbrance of information overload.
Dan Romine, the president and chief executive officer of SocialLogix, said the product was intended to help mitigate the leaking of secret information and any damage to the brand that could occur as a result of an errant post.
Audretsch et al. (2012) indicated that venture capitalists are likely to mitigate the negative effects of information asymmetry (e.g. opportunistic behaviours) by privileging innovative firms when they combine appropriability signals (i.e. patents and patents' applications) with feasibility information (i.e. prototypes).
Complementing financial institutions' (i.e. principals) efforts to mitigate the negative effects of asymmetric information, the voluntary disclosure of private information by innovative firms (i.e. agents) is also likely to facilitate investment contracts' arrangements.
"Having platforms and processes, dramatically mitigate the risks associated with sharing information," says Alex Rice CTO at HackerOne.
