Risking Reputations: when to endorse new drugs?
- We explore the strategies doctors might adopt to manage their
reputation when faced with the choice of publicly adopting a new
prescription drug. In particular we ask whether doctors should
choose to be forerunners on taking a public stance early on in the
drug experimentation process, risking their reputation at first, but
with the prospect of eventually gaining much credit for having been
perceptive before the crowd. We thus explore the waiting times
until drug adoption that doctors learn, and whether these waiting
times come to depend on reputation and on the riskiness of the drug.