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A Dire Donor Shortage

EconEye Admin

India faces rising cases of diseases that damage vital organs. Annually, it needs 175,000 kidney, 50,000 liver, heart, and lung, and 2,500 pancreas transplants. Yet, donor organ supply is critically low. Organs are allocated on the basis of a waiting list with medical urgency, blood type compatibility, and organ size influencing the waiting time.–India Today

The sale of human organs is illegal.–Transplantation of Human Organs and Tissues Act, 1994 (India)

Answer the following questions to check your understanding of the story.

How are scarce organs allocated in India?

Organs are allocated by ___________.

Wrong! - Is the sale of human organs legal? Can organs be allocated by market price? Are organs allocated by force? Are individuals forced to become donors? Are organs allocated to those who are best at particular contest? Are organs allocated by lottery?

That's Right! - A first-come, first-served method allocates resources to those who are first in line. Many organs are allocated to patients whose names come first on the waiting list.

In addition to the first-come, first-served method, organs are also allocated on the basis of personal characteristics of the patient such as medical urgency, blood type compatibility, and organ size.

Why are organs not allocated by market price?

Organs are not allocated by market price because this allocation gives __________.

Wrong! - With a market price mechanism, won’t people who are willing to pay the market price receive an organ and families who are willing to sell at the market price do so? Would there be a deadweight loss, or an underprovision or overprovision of organs?

Correct! - According to the fair results view, a fair outcome is one benefits the less well off. So, the fairest outcome is one that allocates donor organs to the poorest.

If market price was the allocation method in the market for organs, the outcome would be unfair. The rich would benefit because organs would be allocated to those with the ability to pay. Poorer people who need a transplant would be unable to afford one.

How could the number of organs available be increased with the outcome considered fair?

With the current organ allocation method, the number of organs available could be increased if __________.

Wrong! - How can the government distribute taxes to increase the number of organs available? Does taxing live donors and families of deceased donors or compensating transplant patients with tax revenue increase the number of organs available? Does giving hospitals more government revenue increase the number of organs available?

That's Right! - If the government uses tax revenue to compensate live donors and the families of deceased donors, the marginal private cost to donors decreases and more organs are made available.

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