Valuing human organs: an application of contingent valuation

Alper Altinanahtar, John Crooker and Jamie B. Kruse

International Journal of Social Economics, 2008, vol. 35, issue 1/2, 5-14

Abstract: Purpose - This paper aims to estimate a supply response to monetary incentives to donate organs using a survey based on Adams, Barnett and Kaserman. Design/methodology/approach - The paper uses bootstrap techniques to estimate the characteristics of individuals and their willingness to accept monetary compensation for an organ donation commitment. It uses the estimates to fuel a simulation that examines the relationship between a market‐clearing price and the usability rate. The usability rate is the proportion of deaths that result in tissues that are viable for transplant. Findings - By analyzing the relationship between usability rate and market‐clearing price, the paper identifies three important ranges. When the usability rate is about 5 percent, a donation‐only system (zero price) should clear the market. At a usability rate between 2 and 5 percent, modest monetary incentives can attract a supply response that will clear the market. When the usability rate is less than 2 percent, supply becomes sufficiently inelastic so that even large monetary incentives will not solve the shortage problem. Practical implications - If the market mechanism were capable of yielding a greater number of organs for transplantation than the current system, then its adoption would save numerous lives and significantly reduce the cost of treating a variety of serious diseases. Also, it is useful in a benefit‐cost analysis framework designed to measure the social value of refinements in the coordination system. Originality/value - By relating the market‐clearing price of organs to their usability rates, this paper draws attention on the importance of interdisciplinary studies.

Keywords: Body systems and organs; Transplant surgery; Sales incentives (search for similar items in EconPapers)
Date: 2008
References: View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:eme:ijsepp:v:35:y:2008:i:1/2:p:5-14

DOI: 10.1108/03068290810843800

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