Ong, David (2008): Fishy Gifts: Bribing with Shame and Guilt.
![Warning](/style/images/warning.png)
Preview |
PDF
MPRA_paper_17062.pdf Download (796kB) | Preview |
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 |
---|---|
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: | 17062 |
Depositing User: | David Ong |
Date Deposited: | 02 Sep 2009 06:47 |
Last Modified: | 05 Oct 2019 16:46 |
References: | Adair, R. F. and L. R. Holmgren. 2005. "Do Drug Samples Influence Resident Prescribing Behavior? A Randomized Trial." American Journal of Medicine, 118(8):881-4, August Battigalli, Pierpaolo and Martin Dufwenberg. 2009. "Dynamic Psychological Games." Journal of Economic Theory, Elsevier, vol. 144(1), pages 1-35 Battigalli, Pierpaolo and Martin Dufwenberg. 2007. "Guilt in Games." American Economic Review, Volume: 97 Brennan, T. A., D. J. Rothman , L. Blank , D. Blumenthal , S. C. Chimonas,J. J. Cohen , J. Goldman, J. P. Kassirer, H. Kimball, J. Naughton and N. Smelser. 2006. "Health Industry Practices That Create Conflicts of Interest. A Policy Proposal for Academic Medical Centers." Journal of the American Medical Association, 295:429-433 Carlat. 2007. "The Power of 8." The Carlat Psychiatry Blogg, http://carlatpsychiatry.blogspot.com/2007/10/ama-pharma-gifts-and-power-of-8.html Charness, Gary and Martin Dufwenberg. 2006. "Promises and Partnership." Econometrica, Econometric Society, vol. 74 (6), pages 1579-1601 Chew, L. D., O. Young ,T. Hazlet, T. K. Bradley, M. A. Katharine, C. Lessler and S. Daniel. 2000. "A physician survey of the effect of drug sample availability on physicians behavior." Journal of General Internal Medicine;15:478-483 Cho, IIn-Koo and David M. Kreps. 1987. "Signaling games and stable equilibria." Quarterly Journal of Economics, 52:179-221 Dana, Jason and George Loewenstein. 2003. "A Social Science Perspective on Gifts to Physcians." Journal of the American Medical Association, Vol 290, No. 2 Fong, Yuk-fai, Huang, Chen-Ying and Theo Offerman. 2007. "Guilt Driven Reciprocity in a Psychological Signaling Game." http://www.kellogg.northwestern.edu/Faculty/Directory/Fong_Yuk-fai.aspx#research Fortune. 2005. "Most profitable companies" 2001-2005 at: http://money.cnn.com/magazines/fortune Gul, Faruk and Wolfgang Pesendorfer. 2005. "The Canonical Type Space of Interdependent Preferences." http://ideas.repec.org/p/cla/levrem/666156000000000565.html Greene, J. A. "Pharmaceutical Marketing Research and the Prescribing Physician," Annals of Internal Medicine, Volume 146 Issue 10, Pages 742-748, 15 May 2007 Herper, Matthew and Peter Kang. 2006. "The World's Ten Best-Selling Drugs." Forbes. March 22 Hosansky, T. 2008. "Revised PhRMA Code Limits Gifts." Medical Meetings, Jul 17 The Henry J. Kaiser Family Foundation. 2001. "National Survey of Physicians Part II: Doctors and Prescription Drugs." March 26 through October 11 The Henry J. Kaiser Family Foundation. 2007. "Prescription Drug Trends." Madhavan, S. A., M. M. Elliott, D. Burke, and K. P. Gore. 1997. "The gift relationship between pharmaceutical companies and physicians: an exploratory survey of physicians." Journal of Clinical Pharmacy and Therapeutics;22:207-215 Morgan, M. A., Jason Dana, George Loewenstein, S. Zinberg, and J. Schulkin. 2006. "Interactions of Doctors with the Pharmaceutical Industry." Journal of Medical Ethics, ;32(10):559-63, October Norris, P., A. Herxheimer, J. Lexchin, P. Mansfield. 2005. "Drug promotion: what we know, what we have yet to learn." Reviews of materials in the World Health Organization HAI database on drug promotion." http://www.who.int/medicinedocs/en/d/ 63 : Ong, David. 2008. "Sorting with Shame in the Laboratory." www.davidong.net 64 : Ong, David. 2008. "Pro Bono Work and Trust in Fiduciary Professions." Unpublished Ong, David. 2008. "A Simple Model of Intentions with Applications to Experiments." Unpublished Orlowski, J. P. and L. Wateska. 1992. "The effects of pharmaceutical firm enticements on physician prescribing patterns" Chest, 102:270-273, 1992 Public Citizen. 2001. "Rx R&D Myths:The Case Against The Drug Industry's R&D Scare Card." Rabin, Matthew. 1993. "Incorporating Fairness into Game Theory and Economics." American Economic Review, 83, 1281-1302 Randall, M. L., J. R. Rosenbaum, R. M. Rohrbaugh, and R. A. Rosenheck. 2005. "Attitudes and Behaviors of Psychiatry Residents Toward Pharmaceutical Representatives Before and After an Educational Intervention." Academic Psychiatry 29:33-39, March Raw, Julie. 2002. "No Free Golf." Time Magazine, October 27 Ross, J. S., J. E. Lackner, P. Lurie, C. P. Gross, S. Wolfe, and H.M. Krumholz. 2007. "Pharmaceutical Company Payments to Physicians, Early Experiences With Disclosure Laws in Vermont and Minnesota." Journal of the American Medical Association, 297:1216-1223 Steinbrook, R. 2006 "For Sale: Physicians' Prescribing Data." New England Journal of Medecine 354: 2745-2747 Steinman, M. A., M. G. Shlipak and S. J. McPhee. 2001. "Of Principles and pens: attitudes of medicine housestaff toward pharmaceutical industry promotions." American Journal of Medicine, 110:551,557 Tadelis, Steve. 2008. "The Power of Shame and the Rationality of Trust." http://faculty.haas.berkeley.edu/stadelis/working.htm Tangney, June P. and Ronda L. Dearing. 2002. "Shame and Guilt." The Guilford Press Tracy, Jessica L., Rick Robins and June P. Tangney. 2007. "The Self-Conscious Emotions: Theory and Research." The Guilford Press Wazana, Ashley. 2000. "Physicians and the Pharmaceutical Industry: Is a gift ever just a gift?" Journal of the American Medical Association, Vol 283, 373-380 |
URI: | https://mpra.ub.uni-muenchen.de/id/eprint/17062 |
Available Versions of this Item
-
Fishy Gifts: Bribing with Shame and Guilt. (deposited 31 Aug 2009 14:39)
- Fishy Gifts: Bribing with Shame and Guilt. (deposited 02 Sep 2009 06:47) [Currently Displayed]