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Comparing Socially Acceptable and Taboo Markets
Consider two voluntary transactions: 1) A professional sports team pays an athlete millions of dollars for their athletic services. 2) An individual pays another person to act as a surrogate mother. While both are voluntary exchanges, the second transaction is often viewed with significant social and ethical objections. Evaluate why the market for surrogacy is often considered socially unacceptable while the market for professional athletes is not, despite both involving payment for the use of one's body.
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repugnant transaction
Evaluating a Controversial Market Proposal
A new company creates a mobile app that allows people to pay someone to wait in line for them at a popular new restaurant. Despite the fact that both the person paying and the person being paid willingly agree to the exchange, the service is widely criticized as being unfair. Which of the following best explains the basis for this societal objection?
Comparing Socially Acceptable and Taboo Markets
Match each example of a market transaction with the primary social or ethical objection that could lead it to be considered taboo.
According to the principles of market design, a transaction is considered economically efficient and socially acceptable as long as it is voluntary and mutually beneficial to the parties directly involved.
Analyzing a Taboo Market
A government is debating whether to create a legal, regulated market for kidney sales to address a long waiting list for transplants. Proponents argue that a market would increase the supply of available organs, saving lives, and that the transaction is voluntary. Opponents raise strong ethical objections. From an economic perspective that considers social norms, what is the most significant challenge this proposed market faces?
Designing a Socially Acceptable Incentive System
Which of the following scenarios best illustrates a transaction that is widely considered 'repugnant', meaning it is viewed as taboo or morally objectionable even if the participants willingly agree to it?
A new technology allows for the creation of a market where individuals can sell their personal data directly to companies for targeted advertising. While the transactions are voluntary and transparent, the market faces significant public backlash. Arrange the following stages in the most likely order they would occur, from the initial market proposal to its potential failure due to social objections.