We study the implications of public information in a model where market prices convey information to relevant decision makers and the fluctuation of market prices is driven by multiple factors. Disclosure has a positive direct effect of providing new information and an indirect effect of changing the price informativeness. If disclosure is about a variable of which real decision makers are well informed, then the indirect effect is also positive, so that the direct effect is amplified, leading to a positive overall effect on real efficiency. If disclosure is about a variable that real decision markers care to learn much, then the indirect effect is negative and the direct effect is attenuated. Moreover, in markets which aggregate private information effectively, the negative indirect effect can dominate, so that disclosure can harm real efficiency.

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