Abstract

http://ssrn.com/abstract=1615025
 
 

References (30)



 
 

Citations



 


 



The Burden of Disclosure: Increased Compliance with Distrusted Advice


Sunita Sah


Georgetown University - Department of Strategy/Economics/Ethics/Public Policy; Harvard University - Edmond J. Safra Center for Ethics

George Loewenstein


Carnegie Mellon University - Department of Social and Decision Sciences

Daylian M. Cain


Yale School of Management

December 7, 2011

Sah, S., Loewenstein, G., & Cain, D. (2013). The Burden of Disclosure: Increased Compliance with Distrusted Advice. Journal of Personality and Social Psychology, Vol 104(2), 289-304. doi: 10.1037/a0030527.

Abstract:     
Professionals are often influenced by conflicts of interest when they have a personal, often material, interest in giving biased advice. Although disclosure (informing advisees about the conflict of interest) is often proposed as a solution to problems caused by such conflicts, prior research has found both positive and negative effects of disclosure. We present four experiments that reveal a previously unrecognized perverse effect of disclosure: While disclosure can decrease advisees’ trust in the advice, it simultaneously increases pressure to comply with that same advice. We demonstrate that the increased pressure results from advice recipients feeling obliged to help satisfy their advisors’ personal interests when those interests have been disclosed. Hence, disclosure can burden those it is ostensibly intended to protect. We show that the increased pressure to comply is reduced if (1) the disclosure is provided by an external source rather than from the advisor, (2) the disclosure is not common knowledge between the advisor and advisee, (3) a cooling-off period is introduced, or, (4) the advisee can make the decision in private.

Keywords: conflicts of interest, disclosure, advice, ethics, regulation, reluctant altruism

Accepted Paper Series


Not Available For Download

Date posted: May 25, 2010 ; Last revised: November 3, 2013

Suggested Citation

Sah, Sunita and Loewenstein, George and Cain, Daylian M., The Burden of Disclosure: Increased Compliance with Distrusted Advice (December 7, 2011). Sah, S., Loewenstein, G., & Cain, D. (2013). The Burden of Disclosure: Increased Compliance with Distrusted Advice. Journal of Personality and Social Psychology, Vol 104(2), 289-304. doi: 10.1037/a0030527. . Available at SSRN: http://ssrn.com/abstract=1615025 or http://dx.doi.org/10.2139/ssrn.1615025

Contact Information

Sunita Sah (Contact Author)
Georgetown University - Department of Strategy/Economics/Ethics/Public Policy ( email )
Washington, DC 20057
United States
HOME PAGE: http://www.sunitasah.com/research
Harvard University - Edmond J. Safra Center for Ethics ( email )
124 Mount Auburn Street
Suite 520N
Cambridge, MA 02138
United States

George F. Loewenstein
Carnegie Mellon University - Department of Social and Decision Sciences ( email )
Pittsburgh, PA 15213-3890
United States
412-268-8787 (Phone)
412-268-6938 (Fax)
Daylian M. Cain
Yale School of Management ( email )
New Haven, CT 06520
United States
203 432 9441 (Phone)
HOME PAGE: http://mba.yale.edu/faculty/profiles/cain.shtml
Feedback to SSRN


Paper statistics
Abstract Views: 1,564

© 2014 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo2 in 0.297 seconds