Agents exert effort to improve information that guides actions. Actions lead to
observable outcomes. Transparency leads agents to take particular actions and, so,
distorts decisions from those which the information would advocate. If these dis-
torted decisions reveal further information, transparency on the actions taken boosts
information-gathering incentives. If the distortion is towards decisions that conceals in-
formation, transparency dampens incentives. Transparency on the agent’s information
directly can also a¤ect incentives, either positively, or negatively.