Efficiency-Morality Tradeoffs in Repugnant Transactions: A Choice Experiment

Working Paper: NBER ID: w22632

Authors: Julio J. Elias; Nicola Lacetera; Mario Macis

Abstract: 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.

Keywords: efficiency; morality; kidney donation; repugnant transactions

JEL Codes: C91; D01; D47; D63; I11; K32; Z13


Causal Claims Network Graph

Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.


Causal Claims

CauseEffect
efficiency of kidney procurement systems (D61)individuals' preferences for these systems (P00)
moral considerations (A13)individuals' preferences for these systems (P00)
type of payment system (E42)perceived fairness (D63)
perceived fairness (D63)willingness to accept such systems (P40)
type of payment system (E42)willingness to accept such systems (P40)
efficiency of kidney procurement systems (D61)fairness concerns (D63)
median respondent's acceptance threshold for private transactions (E42)efficiency of kidney procurement systems (D61)

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