Efficiency-Morality Trade-Offs in Repugnant Transactions: A Choice Experiment
Societies prohibit many transactions considered morally repugnant, although potentially efficiency-enhancing. We conducted an online choice experiment to characterize preferences for the morality and efficiency of payments to kidney donors. Preferences were heterogeneous, ranging from deontological to strongly consequentialist; the median respondent would support payments by a public agency if they increased the annual kidney supply by six percentage points, and private transactions for a thirty percentage-point increase. Fairness concerns drive this difference. Our findings suggest that cost-benefit considerations affect the acceptance of morally controversial transactions, and imply that trial studies of the effects of payments would inform the public debate.
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Copy CitationJulio J. Elias, Nicola Lacetera, and Mario Macis, "Efficiency-Morality Trade-Offs in Repugnant Transactions: A Choice Experiment," NBER Working Paper 22632 (2016), https://doi.org/10.3386/w22632.
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