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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

    as
    1. Alvin E. Roth, 2009. "What Have We Learned from Market Design?," Innovation Policy and the Economy, University of Chicago Press, vol. 9(1), pages 79-112.
    2. Gary S. Becker & Julio Jorge Elías, 2007. "Introducing Incentives in the Market for Live and Cadaveric Organ Donations," Journal of Economic Perspectives, American Economic Association, vol. 21(3), pages 3-24, Summer.
    3. Lauren Larrouy & Guilhem Lecouteux, 2017. "Mindreading and endogenous beliefs in games," Journal of Economic Methodology, Taylor & Francis Journals, vol. 24(3), pages 318-343, July.
    4. Thaler, Richard H, 1990. "Saving, Fungibility, and Mental Accounts," Journal of Economic Perspectives, American Economic Association, vol. 4(1), pages 193-205, Winter.
    5. Edward Skidelsky & Robert Skidelsky, 2015. "Equality and Corruption," Palgrave Macmillan Books, in: Edward Skidelsky & Robert Skidelsky (ed.), Are Markets Moral?, chapter 0, pages 44-76, Palgrave Macmillan.
    6. Bruno S. Frey, 1997. "Not Just for the Money," Books, Edward Elgar Publishing, number 1183.
    7. Cilem Selin Hazir & Flora Bellone & Cyrielle Gaglio, 2019. "Local product space and firm-level churning in exported products," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 28(6), pages 1473-1496.
    8. Alvin E. Roth & Tayfun Sönmez, 2005. "A Kidney Exchange Clearinghouse in New England," American Economic Review, American Economic Association, vol. 95(2), pages 376-380, May.
    9. Richard H. Thaler, 2008. "Mental Accounting and Consumer Choice," Marketing Science, INFORMS, vol. 27(1), pages 15-25, 01-02.
    10. Alvin E. Roth, 2007. "Repugnance as a Constraint on Markets," Journal of Economic Perspectives, American Economic Association, vol. 21(3), pages 37-58, Summer.
    11. Edward Skidelsky & Robert Skidelsky, 2015. "The Moral Limits of Markets," Palgrave Macmillan Books, in: Edward Skidelsky & Robert Skidelsky (ed.), Are Markets Moral?, chapter 0, pages 77-102, Palgrave Macmillan.
    12. Philippe Steiner, 2010. "Gift-Giving Or Market?," Journal of Cultural Economy, Taylor & Francis Journals, vol. 3(2), pages 243-259, July.
    13. Alvin E. Roth, 2002. "The Economist as Engineer: Game Theory, Experimentation, and Computation as Tools for Design Economics," Econometrica, Econometric Society, vol. 70(4), pages 1341-1378, July.
    14. Frey, Bruno S & Oberholzer-Gee, Felix, 1997. "The Cost of Price Incentives: An Empirical Analysis of Motivation Crowding-Out," American Economic Review, American Economic Association, vol. 87(4), pages 746-755, September.
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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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