U8216 Microeconomics and Policy Analysis
Fall 2000
Group Project 3
PDF
Some things can be bought and sold legally;
other things cannot. Wigs
made of human hair are marketable, but livers, kidneys, and hearts
are not. People can sell labor, and make cigars with saliva, and get
paid to lick stamps and seal envelopes.
But they cannot enter into short-term contracts for sex, or
long-term contracts for labor.
They can risk their lives fro a price as trapeze artists or
coal miners, but since the Civil War have been unable to buy
themselves out of compulsory military service.
The Baby M case raised the question of whether
surrogate-motherhood transactions should be permitted.
More fundamental is the question of whether outright sales
of babies should be permitted.
Adoption fees for healthy infants are now in the $10,000 to
$20,000 range, but they are not treated as purchases; the money
goes for legal fees and some of the mother’s documented
expenses. Many people
pay these fees; many more are apparently willing to do so, but are
constrained by the availability of infants.
The sale of organs (other than blood) raises similar
questions. Congress prohibited these sales several years ago.
The current system of procuring and distributing organs
does not seem to be working well. About one-fourth of the individuals needing heart
transplants, for example, will die before a donor heart is located
for them. On the
other hand, less than a fourth of potential donors become actual
donors. Fewer than
4000 organs were available for transplantation even though there
were 16,000–20,000 accident or trauma-related deaths.
In addition, many transplants fail earlier than they would
otherwise because the tissue in the new organ is not a close
enough match to the recipient’s own tissue.
Both surrogate motherhood and organ transplants also raise
questions bout timing, enforcement, and reneging.
Donors sometimes agree to post-mortem donations, but after
they die their families feel differently.
Who owns the organs? Similarly,
the way surrogate-motherhood litigation seems to be evolving is
for courts to look the other way on “gestational service”
contracts, but refuse to enforce contracts that deprive mothers ex
ante of the right to decide whether to keep a baby after its
birth.
These are important issues for the Ramapough nation.
Having finally won recognition by Congress after having
been turned down several times, the Ramapoughs are considering
establishing a market of some sort in surrogate-motherhood
contracts or organs or blood or all three on their
newly-recognized reservation in the hills above Mahwah, New
Jersey. A large
donation from Donald Trump allowed them to study their heritage
more closely and discover that their religion prohibited gambling,
and so they are considering other ideas for the reservation.
The Ramapoughs have asked you to analyze the issues and
make recommendations about what they should do.
You should consider some or all of the following questions:
What are the advantages of markets for these items?
Are people deprived of rights that they should have by
market prohibitions? If
completely free markets for some of these things are not
desirable, are there ways to regulate these markets?
For instance, should there be a maximum age limitation on
babies who can be sold? Should
there be limitations on who can buy?
Should a futures market be permitted?
What should happen to people who violate contracts?
What reasons are there for prohibiting markets?
Are these reasons also reasons for doing things by
compulsion instead of voluntarily?
What would be the effect of markets on such things as
abortions and education?
Please bear in mind that the fact that only desperate
people use fire escapes is not an argument for banning fire
escapes.
Your job is to convince us, a group of well-meaning
Ramapoughs, to support your recommendations.
Assume we are not fools, and have a propensity for asking
difficult, even obnoxious questions.
Your presentation therefore should anticipate as many
objections to your proposal as possible, state them honestly, and
answer them. You
should plan to talk for about 20 minutes, after which there will
be questions. Use
cartoons, dance, or drama if you feel they would help you; don’t
feel bad about planting somebody in the audience either, or using
other tricks, if you think that’s the best way to go.
You should also provide the Ramapough leaders with a draft
of a press release you want them to issue. |
| Members |

David Garten |

Christopher McGowan |

Shinichi Murota |

Daniele Schiffman |

Zeyu Xu |

Yumiko Yamamoto |
|