Room: Phillips 231
Time: Tue 08:30 AM-10:00 AM

The Economics of Blood and Organ Donations

Chair: Genevieve Kanter

Session Description

Considerable effort has been spent devising incentives to remedy the shortage of organs in the absence of a formal price driven market. Yet, the shortages in blood and organ donations persist. As of November 2009, the United Network for Organ Sharing reports 104,669 individuals are awaiting organs transplants. There are currently blood shortages in Canada, Germany, India, Malaysia, Nepal, and the United States. The proposed solutions from economics have been summarized in a special issue of the Journal of Economic Perspectives (Summer 2007). Although, a majority of economist support a pricing system for organs/blood donations there exist several challenges to the adoption of the market mechanism. First, the idea of trading organs for monetary rewards is considered repugnant, may abuse the poor, and may lead to poor quality. Second, the lack of price variation in the organs market has lead to little empirical analysis. Instead, empirical studies have focuses on alternative influences and incentives still present in the organ/blood market. In this session, three empirical papers on organ/blood donations examine the following questions:

1) How do changes in motorcycle helmet laws affect the supply of organ donations?
2) How do changes in the supply of cadaveric donors affect the supply of living donors?
3) How do economic incentives affect the rate of blood donations?

These papers highlight the present condition of the organs market and provide insight into a price driven organs market. The first two papers consider potential demand and supply shifters in this market. The third paper provides insight on a price driven market for organs through the analysis of monetary payment for blood donations.

Key Terms None

Session Organizer: Jose Fernandez (University of Louisville)

---

Presentations

1. Donorcycles: Motorcycle Helmet Laws and the Supply of Organ Donors

   Presenter: Todd Elder (Michigan State University)

   Discussant: Jeff DeSimone (University of Texas at Arlington)

2. The Effect of Traffic Safety Laws and Obesity Rates on Living Organ Donations

   Presenter: Jose Fernandez (University of Louisville)

   Discussant: Partha Deb (City University of New York, Hunter College)

3. Will There be Blood? Incentives and Substitution Effects in Pro-Social Behavior

   Presenter: Mario Macis (University of Michigan)

   Discussant: Damien Sheehan-Connor (Wesleyan University)