Transcript Should We Allow a Market For Transplant Organs?

Welcome Teachers!
The Ethical Foundations of Economics
EconomicsWisconsin
and
Centers for Economic Education
at
University of Wisconsin-Milwaukee
University of Wisconsin-Parkside
Many thanks to our generous sponsors:
John
Templeton
Foundation
Should We Allow a Market For
Transplant Organs?
Or. . .
Brother,
can you spare a kidney?
Dr. Norman Cloutier, Director
UW-Parkside Center for Economic Education
The Ethical Foundations of Economics
December 5, 2007
Objectives
Students will:
1. Describe the effects of a price ceiling on
the market for kidneys available for
transplant.
2. Analyze the effects of legalizing the
purchase and sale of transplant organs.
3. Describe three main types of moral or
ethical theories.
4. Use economic and ethical theories to
evaluate four organ-transplant policies.
Kidney Transplant Background
• Both transplants and those seeking
transplants have grown over time.
• Transplants
• 1990 10,000
• 2005 13,700
• Most of this increase came from live donors.
• Waiting list
• 1990 17,000
• 2006 65,000
• Reasons for the increase?
– Technological advance.
– Inability of the current system to procure enough
organs.
• Waiting list is not a complete measure of
kidney demand. In 2004, there were 50,000 on
the official waiting list, but 335,000 on
dialysis.
• The median waiting time for people placed on
the kidney transplant waiting list is more than
3 years.
• People suffer and die while waiting for a
kidney transplant:
• 1990
• 2005
1,000 people died
4,000 people died
• In 2004, 80% of living donors and
recipients were related.
• The opportunity to buy and sell kidneys
has the potential to save lives and
improve the quality of life for many
people.
The Demand for Kidney Transplants
Has Grown Faster Than the Supply
Source: Becker and Elias, 2007
Prohibition places a ceiling price on kidneys.
Government mandated
price ceiling of $0.
How many kidneys are donated at P=$0?
20,000 kidneys
supplied (donated)
at P= $0
How many kidneys are demanded at P=$0?
20,000 kidneys
supplied (donated)
at P= $0
80,000 kidneys
demanded at P= $0
What is the shortage, and what caused it?
60,000 kidney
shortage
What would happen if the ban on kidney sales was lifted?
Would a market in kidneys be
fair to the poor?
• No!
• Poor are priced out of the market.
• Poor may be “coerced” into selling kidneys.
• Poor may not understand the risks.
• Yes!
• Sale would significantly increase the wealth of
a poor family.
• Is it ethical to deprive the poor of the
opportunity to increase their standard of living
– and save lives?
• We allow markets in: blood, hair, and the use of
a uterus.
Would a market increase the
incentive for organ theft?
• Probably not.
• As opposed to prohibition, a market
would make kidneys more available,
lowering the price, making theft less
profitable.
• A live donor market could eliminate the
possibility theft.
• Under prohibition, what is the black
market price of a kidney?
The Black Market price of kidneys?
Would there be fewer altruistic donors?
S
Public campaign to increase altruistic donations?
S
If it is obvious that a market would
save lives, why don’t we allow it?
Agent
Action
Consequences
Ethical Theories
• Outcomes-Based: Right Consequences
• It’s results that matter.
• Market would save lives.
• Duty-Based: Right Action
• Proscribed ethical principles should be followed.
• Is it right to treat your body as a commodity?
• Virtue-Based: Right Agent
• Intentions and personal virtues matter.
• What would a “good” person do?
Further Reading
• Becker and Elias, “Introducing Incentives in the Market
for Live and Cadaveric Organ Donations, Journal of
Economic Perspectives 21(3), Summer 2007, p.2-24
• Howard, “Producing Organ Donors,” Journal of
Economic Perspectives 21(3), Summer 2007, p. 25-36.
• Roth, “Repugnance as a Constraint on Markets,”
Journal of Economic Perspectives 21(3), Summer
2007, p. 37-58.
• http://freakonomics.blogs.nytimes.com/2007/11/13/kidne
ys-for-sale/#more-2089