On hiatus

Tuesday, May 29, 2007

Laissez-Fairre Livers

A Dutch Television Network intends to broadcast a reality television show whereby contestants will vie for the organs of a terminally ill woman.

This is ultra tacky, but it got me thinking.

In college, I was involved in a group project examining the economics of organ donation. Centering organ transplants around a donation-only system is the economic equivalent of a price ceiling; it just so happens that the price being ceilinged is zero.

A great example of a price ceiling is rent controls. Common in some urban areas, a rent control stipulates the maximum price that an owner can charge for a given apartment. The advantage of a price ceiling is, of course, a low price, theoretically affordable for a larger number of people. The huge disadvantage is a gap between the number of willing consumers at market price and the number of willing suppliers at market price – a shortage.

So, what do we have in the organ donation ‘market?’ A huge shortage of ‘suppliers’ (donors) relative to the demanders (those in need of organs).

Let me be clear, organ donation is really awesome. I’ve signed the back of my license, I hope you have too. But there is really very little doubt that the number of people whose lives could be saved by organ transplants is larger if it weren’t limited to donation.

I’m proposing a market for the transaction of organs.

The chief argument against free-market organs will be the inevitable inequality between organ sellers and organ buyers. Undoubtedly, buyers would predominantly come from a wealthier background, while sellers may only be doing so out of financial desperation due to being lower on the ladder.

I doubt that long-term the gap would be any more predominant than public education, which has been sold to me as equal (it’s not). But even if it weren’t, consider the options we have before us…

A.) Potentially saving the lives of x people, who happen to be directly slanted upward toward the higher end of the socioeconomic ladder.

B.) The status quo, saving the lives of a fraction of x people, who happen to be randomly sorted along the same ladder.

I can understand the pursuit of equal access to housing, education, and healthcare. But if we’re talking about actual lives, do we not have an obligation to create an environment in which the most possible can be saved?

2 Comments:

Blogger Adam said...

Here's an idea -- why not grant persons who agree to be organ donors a tax refund? This solves both the problems of reduced supply and the free-market advantage of being rich.

Laissez-faire capitalism has its merits, I grudgingly admit. But when a person dies because he can't afford the enormous cost that would undoutedly accompany bidding for an organ transplant, that's just flat wrong.

Now, you might argue that a tax refund is also a price ceiling, and it is -- but if the government offered, say, $1,000 to everyone who agrees to sign the back of their driver's license, I guarantee the number of donors would skyrocket.

Where is this $1,000 per person going to come from? Well, someone would have to work out the numbers, but I'm betting the national health insurance costs would drop at least that much when thousands of people are released from hospitals earlier as a result of having more organs available for transplant ...

10:41 AM

 
Blogger Lyons said...

I think you may be on to something.

As to your second point, again I ask what's worse: people dying because they can't afford an organ, or more people dying because they weren't given the chance to buy one?

2:29 PM

 

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