Abstract
A severe shortage of cadaveric human organs for transplantation exists in the U.S. The obvious cause of this shortage is our current public policy which proscribes payment for such organs. Support for this policy and opposition to the formation of organ markets has been quite strong among transplant suppliers (both hospital and physician groups). This paper critically evaluates the ethical arguments advanced to buttress this policy position and presents an alternative economic explanation based upon profit-maximizing behavior. The model we develop is based upon monopsony in organ procurement with a kinked (and possibly discontinuous) organ supply function.
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The authors thank William Shepherd and an anonymous referee for helpful suggestions on an earlier draft of this paper. Their comments caused us to completely rethink (and improve) the model developed here. The usual caveat applies.
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Barnett, A.H., Beard, T.R. & Kaserman, D.L. The medical community's opposition to organ markets: Ethics or economics?. Rev Ind Organ 8, 669–678 (1993). https://doi.org/10.1007/BF01024291
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DOI: https://doi.org/10.1007/BF01024291