Remedying adverse selection in donor-priority rule using freeze period: Theory and experiment

Mengling Li, Yohanes Riyanto and Menghan Xu

Journal of Economic Behavior & Organization, 2022, vol. 194, issue C, 384-407

Abstract: Improving the deceased organ donation is the key to alleviate organ shortages. We compare the aggregate donation incentive and social welfare under different organ allocation mechanisms theoretically and test the predictions in the laboratory. While boosting the aggregate donation rate, the donor-priority rule brings an unwanted impact by attracting more donations from agents with a higher risk of organ failure. This compromises the average quality of organ supply and decreases social welfare. We show that by augmenting the donor-priority rule with a freeze period, which delays the effective starting time of the priority benefit, it improves the aggregate donation rate without reducing social welfare.

Keywords: Organ donation; Priority rule; Laboratory experiment; Public policy; Health economics (search for similar items in EconPapers)
JEL-codes: C91 D47 D64 D78 I11 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jeborg:v:194:y:2022:i:c:p:384-407

DOI: 10.1016/j.jebo.2021.12.021

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