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Efficient Kidney Exchange with Dichotomous Preferences

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  • Cheng, Yao
  • Yang, Zaifu

Abstract

This paper studies a general kidney exchange model with compatible patient-donor pairs, incompatible patient-donor pairs, single donors, and patients on the waiting list. We derive an explicit formula of the maximal number of feasible kidney transplants under several sizes of cycles and chains of exchange, analyze the effect of different ways of exchange on efficiency, and provide substantial simulation results based on the USA data. Our results further show that kidney exchange can be decentralized for relatively large populations, and that allowing compatible pairs and single donors to exchange with incompatible pairs can significantly increase the number of feasible kidney transplants. A more general model of two-category type-compatible exchanges is also established.

Suggested Citation

  • Cheng, Yao & Yang, Zaifu, 2021. "Efficient Kidney Exchange with Dichotomous Preferences," Journal of Health Economics, Elsevier, vol. 80(C).
    • Handle: RePEc:eee:jhecon:v:80:y:2021:i:c:s0167629621001211
    DOI: 10.1016/j.jhealeco.2021.102536
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    References listed on IDEAS

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    1. Tayfun Sönmez & Alvin E. Roth & M. Utku Ünver, 2007. "Efficient Kidney Exchange: Coincidence of Wants in Markets with Compatibility-Based Preferences," American Economic Review, American Economic Association, vol. 97(3), pages 828-851, June.
    2. Roth, Alvin E. & Sonmez, Tayfun & Utku Unver, M., 2005. "Pairwise kidney exchange," Journal of Economic Theory, Elsevier, vol. 125(2), pages 151-188, December.
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    4. Zenios, Stefanos & Woodle, E. Steve & Ross, Lainie Friedman, 2001. "Primum Non Nocere: Avoiding Harm to Vulnerable Wait List Candidates in an Indirect Kidney Exchange," Research Papers 1684, Stanford University, Graduate School of Business.
    5. Bilgel, Fırat & Galle, Brian, 2015. "Financial incentives for kidney donation: A comparative case study using synthetic controls," Journal of Health Economics, Elsevier, vol. 43(C), pages 103-117.
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    13. Yao Cheng & Zaifu Yang, 2017. "Efficient Kidney Exchange with Dichotomous Preferences," Discussion Papers 17/13, Department of Economics, University of York.
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    More about this item

    Keywords

    Kidney Exchange; Kidney Transplant; Efficiency; Simulation;
    All these keywords.

    JEL classification:

    • C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory
    • D47 - Microeconomics - - Market Structure, Pricing, and Design - - - Market Design
    • I19 - Health, Education, and Welfare - - Health - - - Other

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