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Evaluating a Controversial Market
Some economists argue that creating a legal, regulated market for human kidneys would increase the supply available for transplantation and save lives. However, such a market is banned in most countries due to strong social and ethical objections. Evaluate the economic arguments in favor of such a market against the societal concerns that lead to its prohibition. In your evaluation, consider the potential effects on efficiency, equity, and the nature of the good being traded.
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SARS-CoV-2 (COVID-19)
Biomedical Sciences
Introduction to Microeconomics Course
Evaluation in Bloom's Taxonomy
CORE Econ
Economy
Social Science
Empirical Science
Science
Cognitive Psychology
Psychology
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Example
Market Design and Social Norms
Evaluating a Controversial Market
A company proposes creating a regulated online marketplace where people in dire financial situations can solicit and receive large, no-strings-attached cash gifts from anonymous wealthy donors. Despite being a voluntary exchange that could benefit both parties, there is significant public outcry against the idea, with many calling it 'indecent'. Which of the following best explains this opposition through the lens of a 'repugnant transaction'?
Analyzing Social Resistance to Markets
Match each example of a transaction that is often considered socially unacceptable with the primary ethical objection that drives this view.
In the context of market design, a transaction is considered 'repugnant' primarily because it is illegal or causes direct, quantifiable harm to the participating parties, rather than due to broader social or ethical objections.
Identifying Socially Resisted Transactions
Designing a Market for a Sensitive Good
A government is considering several proposals to create new markets. Which of the following proposals, if met with strong public opposition, would best be characterized as a 'repugnant transaction'?
Evaluating the Cancellation of a Controversial Market