?url_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Adc&rft.relation=https%3A%2F%2Fmpra.ub.uni-muenchen.de%2F35197%2F&rft.title=Fishy+Gifts%3A+Bribing+with+Shame+and+Guilt&rft.creator=Ong%2C+David&rft.subject=I11+-+Analysis+of+Health+Care+Markets&rft.subject=D86+-+Economics+of+Contract%3A+Theory&rft.subject=M31+-+Marketing&rft.subject=H51+-+Government+Expenditures+and+Health&rft.subject=H75+-+State+and+Local+Government%3A+Health+%3B+Education+%3B+Welfare+%3B+Public+Pensions&rft.subject=I18+-+Government+Policy+%3B+Regulation+%3B+Public+Health&rft.subject=M37+-+Advertising&rft.subject=D82+-+Asymmetric+and+Private+Information+%3B+Mechanism+Design&rft.subject=C72+-+Noncooperative+Games&rft.description=Gifts+are+often+used+where+the+institutions+of+contracting+do+not+exist%2C+or+are+underdeveloped%2C+as+in+emerging+markets%2C+or+otherwise+unenforceable%2C+as+with+illicit+transactions+in+developed+markets.+The+following+is+an+analysis+of+gifts+in+the+context+of+belief+preferences+with+unobservable+reciprocation.+I+show+that+if+recipients+are+heterogeneously+shame+and+guilt+averse%2C+the+beliefs+implied+by+a+gift+can+induce+a+self-fulfilling+reputation+through+their+interaction.+In+particular%2C+I+show+how+a+bribing+firm%2C+by+varying+the+saliency+of+the+bribe+through+cheap+talk+announcements+or+by+varying+the+value+of+the+gift%2C+can+induce+free-riders+(non-reciprocators)+to+reject+and+thus%2C+reduce+costs.+In+cases+when+the+shame+of+accepting+a+possible+bribe+is+too+great%2C+I+show+lowering+the+cost+can+invite+free-riders+to+accept%2C+and+thus%2C+reduce+the+shame+of+those+who+would+reciprocate+into+accepting.+The+model+was+inspired+by+the+gift+giving+practices+of+pharmaceutical+firms+to+US+doctors.+I+explain+a+perverse+consequence+of+current+policies+to+prevent+reciprocation%2C+and+why+the+most+obvious+solution%2C+a+ban+on+gifts%2C+has+been+adopted+only+by+a+handful+of+hospitals.+I+discuss+implications+for+professional+services+where+reciprocation+is+a+credence+good.+To+my+knowledge%2C+this+is+the+first+study+of+how+the+shame+of+accepting+a+gift+may+interact+with+the+guilt+of+not+reciprocating+to+select+for+reciprocation.&rft.date=2008-05&rft.type=MPRA+Paper&rft.type=NonPeerReviewed&rft.format=application%2Fpdf&rft.language=en&rft.identifier=https%3A%2F%2Fmpra.ub.uni-muenchen.de%2F35197%2F1%2FMPRA_paper_35197.pdf&rft.identifier=++Ong%2C+David++(2008)%3A+Fishy+Gifts%3A+Bribing+with+Shame+and+Guilt.++++&rft.language=en