Some goods are bought and sold freely on markets whereas others are not. For example, it is usually against the law to sell a kidney. Many countries also put restrictions on egg donation for payment in reproductive medicine. Nobel laureate, Al Roth, has referred to repugnance “as a constraint in markets” (Roth, 2007) in this context, but why do states interfere with free markets in these cases and what are the consequences?
Your writing assignment:
Pick one of the two examples given above, egg donation for payment or kidney sale. Provide an informative description of the current situation for these goods, for instance, demand and regulations in different countries. Discuss, using your knowledge and the supply and demand model from the course, the consequences of a ban or partial ban on the sale of the good. Describe the economic debate about whether there should be restrictions on the sale of the good of your choice.