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What Do We Learn from Market Design?

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  • Nicolas Brisset

    (Université Côte d’Azur
    GREDEG CNRS)

Abstract

In this paper we try to show how the social and political acceptance of Roth's market design for kidney exchange provides some explanation of the rejection of market logic. We address three hypotheses generally cited as potential causes of the market rejection of certain goods: (I) the corrupting nature of money, (II) the idea that the market as such would be rejected, and (III) the assumption that the basis for market rejection would be the dominance it implied between seller and buyer. The example of the device developed by Roth, Ünver and Sönmez (2004, 2005) regarding the matching of organs from living donors suggests a fourth hypothesis: the market rejection of organs appears to be based not on the existence of potential domination but on the fact that this market presupposes such domination. In other words, economic domination appears to be a prerequisite for the organ trade: no domination, no market.

Suggested Citation

  • Nicolas Brisset, 2017. "What Do We Learn from Market Design?," GREDEG Working Papers 2017-03, Groupe de REcherche en Droit, Economie, Gestion (GREDEG CNRS), Université Côte d'Azur, France.
    • Handle: RePEc:gre:wpaper:2017-03
    as

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    File URL: http://www.gredeg.cnrs.fr/working-papers/GREDEG-WP-2017-03.pdf
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    References listed on IDEAS

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    More about this item

    Keywords

    Market Design; Repugnance; Money; Coercion; Gift-giving;
    All these keywords.

    JEL classification:

    • B41 - Schools of Economic Thought and Methodology - - Economic Methodology - - - Economic Methodology
    • D47 - Microeconomics - - Market Structure, Pricing, and Design - - - Market Design
    • D64 - Microeconomics - - Welfare Economics - - - Altruism; Philanthropy; Intergenerational Transfers
    • A14 - General Economics and Teaching - - General Economics - - - Sociology of Economics

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