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Loopholes undermine donation: An experiment motivated by an organ donation priority loophole in Israel

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  • Kessler, Judd B.
  • Roth, Alvin E.
Abstract
Giving registered organ donors priority on organ waiting lists, as has been implemented in Israel and Singapore, provides an incentive for registration and has the potential to increase the pool of deceased donor organs. However, the implementation of a priority rule might allow for loopholes – as is the case in Israel – in which an individual can register to receive priority but avoid ever being in a position to donate organs. We experimentally investigate how such a loophole affects donation and find that the majority of subjects use the loophole when available. The existence of a loophole completely eliminates the increase in donation generated by the priority rule. When information about loophole use is made public, subjects respond to others' use of the loophole by withholding donation such that the priority system with a loophole generates fewer donations than an allocation system without priority.

Suggested Citation

  • Kessler, Judd B. & Roth, Alvin E., 2014. "Loopholes undermine donation: An experiment motivated by an organ donation priority loophole in Israel," Journal of Public Economics, Elsevier, vol. 114(C), pages 19-28.
    • Handle: RePEc:eee:pubeco:v:114:y:2014:i:c:p:19-28
    DOI: 10.1016/j.jpubeco.2013.12.006
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    3. Niu, Xiaofei & Li, Jianbiao, 2020. "Incentivizing organ donation by swearing an oath: The role of signature and ritual," EconStor Preprints 203243, ZBW - Leibniz Information Centre for Economics, revised 2020.
    4. Li, Mengling & Riyanto, Yohanes E. & Xu, Menghan, 2023. "Prioritized organ allocation rules under compatibility constraints," Games and Economic Behavior, Elsevier, vol. 141(C), pages 403-427.
    5. Herr, Annika & Normann, Hans-Theo, 2018. "How much Priority Bonus Should be Given to Registered Donors? An Experimental Analysis," DICE Discussion Papers 306, Heinrich Heine University Düsseldorf, Düsseldorf Institute for Competition Economics (DICE).
    6. Herr, Annika & Normann, Hans-Theo, 2016. "Organ donation in the lab: Preferences and votes on the priority rule," Journal of Economic Behavior & Organization, Elsevier, vol. 131(PB), pages 139-149.
    7. Walter Castro & Julio Elias, 2022. "Injecting Adam Smith’s Ideas in the Market for Kidney Transplants," CEMA Working Papers: Serie Documentos de Trabajo. 828, Universidad del CEMA.
    8. He, Ke & Wang, Yujie & Zhang, Junbiao & Wang, Qingbin, 2022. "Out of the shadows: Impact of SARS experience on Chinese netizens' willingness to donate for COVID-19 pandemic prevention and control," China Economic Review, Elsevier, vol. 73(C).
    9. Tinglong Dai & Ronghuo Zheng & Katia Sycara, 2020. "Jumping the Line, Charitably: Analysis and Remedy of Donor-Priority Rule," Management Science, INFORMS, vol. 66(2), pages 622-641, February.
    10. Li, Mengling & Riyanto, Yohanes E. & Xu, Menghan, 2022. "Remedying adverse selection in donor-priority rule using freeze period: Theory and experiment," Journal of Economic Behavior & Organization, Elsevier, vol. 194(C), pages 384-407.
    11. Slonim, Robert & Wang, Carmen, 2016. "Market Design for Altruistic Supply: Evidence from the Lab," IZA Discussion Papers 9650, Institute of Labor Economics (IZA).
    12. Hawley, Zackary & Li, Danyang & Schnier, Kurt & Turgeon, Nicole, 2018. "Can we increase organ donation by reducing the disincentives? An experimental analysis," Economics & Human Biology, Elsevier, vol. 29(C), pages 128-137.
    13. Misra, Akansha & Saranga, Haritha & Tripathi, Rajeev R, 2022. "Channel choice and incentives in the cadaveric organ supply chain," European Journal of Operational Research, Elsevier, vol. 302(3), pages 1202-1214.
    14. Judd B. Kessler & Alvin E. Roth, 2014. "Don't Take 'No' For An Answer: An Experiment With Actual Organ Donor Registrations," NBER Working Papers 20378, National Bureau of Economic Research, Inc.
    15. Eric Budish & Judd B. Kessler, 2016. "Can Market Participants Report their Preferences Accurately (Enough)?," NBER Working Papers 22448, National Bureau of Economic Research, Inc.
    16. Kim, Jaehong & Li, Mengling & Xu, Menghan, 2021. "Organ donation with vouchers," Journal of Economic Theory, Elsevier, vol. 191(C).
    17. Tianshu Sun & Guodong (Gordon) Gao & Ginger Zhe Jin, 2015. "Mobile Messaging for Offline Group Formation in Prosocial Activities: A Large Field Experiment," NBER Working Papers 21704, National Bureau of Economic Research, Inc.

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