Ong, David (2008): Fishy Gifts: Bribing with Shame and Guilt.
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Abstract
The following is a model of psychological contracting with unmonitorable performance, implicit offers, and screening for non-performance by the announcement of the expectation of performance. It is motivated by the $250 billion prescription drug industry, which spends $19 billion per year on marketing to US doctors, mostly on `gifts', and often, as at Yale, with no monitoring for reciprocation. In one revealing incident, a drug firm representative closed her presentation to Yale medical residents by handing out $150 medical reference books and remarking, "one hand washes the other." By the next day, half the books were returned. I model this with a one shot psychological trust game with negative belief preferences and asymmetric information. I show that the `shame' of accepting a possible bribe can screen for reciprocation inducing `guilt'. An announcement can extend the effect. Current policies to deter reciprocation might aid such screening. I also discuss applications like vote buying when voting is unobservable and why taxis drivers in Naples announce inflated fares after their service is sunk.
Item Type: | MPRA Paper |
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Original Title: | Fishy Gifts: Bribing with Shame and Guilt |
Language: | English |
Keywords: | bribery, guilt, shame, gifts, drug firms, doctors, social norms, indirect speech, psychological trust game, contracting |
Subjects: | I - Health, Education, and Welfare > I1 - Health > I11 - Analysis of Health Care Markets D - Microeconomics > D8 - Information, Knowledge, and Uncertainty > D86 - Economics of Contract: Theory M - Business Administration and Business Economics ; Marketing ; Accounting ; Personnel Economics > M3 - Marketing and Advertising > M31 - Marketing H - Public Economics > H5 - National Government Expenditures and Related Policies > H51 - Government Expenditures and Health H - Public Economics > H7 - State and Local Government ; Intergovernmental Relations > H75 - State and Local Government: Health ; Education ; Welfare ; Public Pensions I - Health, Education, and Welfare > I1 - Health > I18 - Government Policy ; Regulation ; Public Health M - Business Administration and Business Economics ; Marketing ; Accounting ; Personnel Economics > M3 - Marketing and Advertising > M37 - Advertising D - Microeconomics > D8 - Information, Knowledge, and Uncertainty > D82 - Asymmetric and Private Information ; Mechanism Design C - Mathematical and Quantitative Methods > C7 - Game Theory and Bargaining Theory > C72 - Noncooperative Games |
Item ID: | 17019 |
Depositing User: | David Ong |
Date Deposited: | 31 Aug 2009 14:39 |
Last Modified: | 28 Sep 2019 10:55 |
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URI: | https://mpra.ub.uni-muenchen.de/id/eprint/17019 |
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