Case Study

Policy Analysis of Regulated Commercial Surrogacy

A country is debating a proposal to legalize commercial surrogacy, but with specific regulations. These include: (1) a price ceiling on the compensation paid to the surrogate, (2) mandatory psychological screening for all parties, and (3) a requirement that the surrogate must have previously given birth. From an economic standpoint, how do these regulations potentially undermine the efficiency of a voluntary agreement? For each regulation, what non-economic or ethical concern is it likely intended to mitigate?

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Updated 2025-10-04

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