The Limits of Transparency: Pitfalls and Potential of Disclosing Conflicts of Interest

George Loewenstein & Daylian M. Cain & Sunita Sah, (2011) “The Limits of Transparency: Pitfalls and Potential of Disclosing Conflicts of Interest,"
American Economic Review,  vol. 101(3), pages 423-28, May. [link to AER]

Noted by Yi-Nung

這篇提及到 Can and Moore (2005, 2011) 的實驗, 有關利益衝突與揭露 (disclosure of conflicts);

可應用在:

centipede game (揭露/未揭露 first mover 的 payoff)
理專/Broker 揭露/未揭露 commission
Ultimatum game 改成 部份捐款給慈善機構 (或 as a public good), 是否會緩和 fairness 的要求

主要結論: more information, in general, is not very effective in improving decisions…. that disclosure does not replace more effective measures, such as working harder to eliminate conflicts of interest in the first place.

p.424: … the introduction of a subsidy or fine can undermine nonmaterial motives, disclosing a conflict of interest can likewise undermine the advisor’s motivation to adhere to professional standards. … Experimental research suggests that … people feel “licensed" to act immorally in subsequent interactions. Disclosure also introduces a possible rationalization for unethical behavior…"expect" bias.

research on judgment suggests that advisees are likely to “anchor" on the advice they receive and then adjust insufficiently, even though they know the advice may be biased (Tversky and Kahnemen, 1974) (先說先嬴…)

p.424:

…disclosure can lead to an increase rather than a decrease in trust if the disclosure is interpreted as a sign of honesty or if the fact that the advisor is receiving payments is interpreted as in indication of professional standing.

主要的例子:

1. 房地產仲介

2. 醫病諮詢

(p.242) In the absence of disclosure,…, a patient’s rejection of participation in a drug trial would likely be attributed to risk aversion… The same rejection,… might be attributed to the patient’s distrust of the doctor

3. 財務經紀人與顧問

Abstract:

We review evidence from our published and ongoing research that disclosing conflicts of interest has unintended consequences, helping conflicted advisors and harming their advisees: With disclosure, advisors feel comfortable giving more biased advice, but advisees do not properly adjust for this and generally fail to sufficiently discount biased advice. Disclosure also increases pressure on advisees to comply with advice; following disclosure, advisees feel more uncomfortable in turning down advice (e.g., it signals distrust of the advisor’s motives). Finally, we examine the effectiveness of policy interventions aimed at reducing these unintended consequences and discuss how to realize potential benefits of disclosure.