Efficient and Incentive-Compatible Liver Exchange
Haluk Ergin (),
Tayfun Sönmez () and
Utku Unver ()
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Haluk Ergin: Department of Economics, University of California at Berkeley
No 951, Boston College Working Papers in Economics from Boston College Department of Economics
Liver exchange has been practiced in small numbers, mainly to overcome blood-type incom- patibility between patients and their living donors. A donor can donate either his smaller left lobe or the larger right lobe, although the former option is safer. Despite its elevated risk, right-lobe transplantation is often utilized due to size-compatibility requirement with the patient. We model liver exchange as a market-design problem, focusing on logistically simpler two-way exchanges. First, with two patient-donor sizes, we introduce an algorithm when only the safer left-lobe transplantation is feasible. We then introduce an individually rational, Pareto-efficient, and incentive-compatible mechanism that truthfully elicits the right- lobe-donation willingness of donors, and finally extend these results to a general model with any number of patient/donor sizes. The generalization requires new technical tools regarding bilateral exchanges under partial-order-induced preferences. Through simulations we show that not only liver exchange can increase the number of transplants by more than 30%, it can also increase the share of the safer left-lobe transplants.
Keywords: Market design; liver exchange; matching; incentive compatibility; efficiency (search for similar items in EconPapers)
JEL-codes: D47 C78 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-des and nep-gth
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