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Chapter 19: Q8E (page 713)

Question: In the U.S. and a number of other countries, individuals wishing to make organ donations at the end of their life have to “opt-in,” i.e., to affirmatively agree to be a donor. In contrast, a host of other countries have an “optout” policy, whereby you have to explicitly state that you do not wish to be a donor to reject the organ donation option. Can you use your knowledge of behavioral economics to explain the empirical phenomenon that organ donation rates are substantially higher in opt-out countries than in opt-in countries?

Short Answer

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The organ donation rates are substantially higher in opt-out countries than in opt-in countries because it removes socio-religious and psychological barriers in donating the deceased organs. Also, the process of opting out from organ donation is time taking due to which the process cannot be completed on time.

Step by step solution

01

Explanation

The opt-out policy removes the social, religious, and psychological barriers from donating the deceased organs.Generally, people have misperceived notions about becoming organ donors and are not willing to initiate donating their organs. The opt-out policy removes barriers as lack of awareness, socio-religious challenges, and family consent.

Also, in the opt-out policy, individuals have to come forward for refusing the policy. It may sometimes be impossible for many individuals to complete the process, generally because of untimely death, and their consent goes in yes to donate the deceased organs.Therefore, people generally do not choose to explicitly state that they do not wish to be an organ donor.

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Most popular questions from this chapter

Question: The demand curve for Uber weekday rides in a certain city is described by the following equation: Q = 50 - P. An average ride costs \(25. However, during weekend nights the demand for rides increases dramatically and thus the new demand curve is: Q = 100 - P. As a result, Uber implements a surge price that is twice the price of an average ride, or \)50.

  1. Graph the demand curves and determine the quantity of rides demanded during weekdays and on weekend nights based on the above prices. Label the graph with the prices and quantities.
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