Does transparency affect behavior?

“Drug Firms Curb Ties to Doctors,” Wall Street Journal, December 18, 2013 B3 http://on.wsj.com/1kigduF

Glaxo changing a key marketing practice: paying doctors to promote certain drugs, including paying “influencers” to speak about (i.e, promote) the drugs.

Why are they stopping? Is it due to last year’s scandal involving Glaxo, alleging illegal promotion and withholding data, resulting in a $3 billion fine?  Is it because of the charges in China that Glaxo was bribing doctors and hospitals to sell more, higher-priced drugs?

Perhaps.

Or is it due to another paragraph in the article, pointing out that due to regulatory changes, beginning in 2014 drug companies need to report those payments to the government, which would post the results online?  If you’re doing something that you don’t want others to know about, should you ask yourself why?

Sure, you can keep trade secrets secret, and keep your profit margins confidential (unless you are contracting with the government).  But what about secret payments?

 

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