GEA1.docx - Policy Analysis in the Kidney Market Steranda...

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Policy Analysis in the Kidney Market Steranda Laine ECO 2023-901: Microeconomic Principles Chris Jones, Ph.D June 26, 2020 Current State of the Kidney Market in the U.S.: The current state of the kidney donation in the United States is pretty high when compared to the kidney donations made throughout the
nation. Much of the kidneys in the market are from deceased donors and these organs can only perform well for a limited amount of time. According to the Black Market Bodies, the demand for kidneys in the nation is relatively high whereas the supply of kidneys is relatively low. This affects the curves in the market by increasing the price at which kidneys are sold for due to the increase in demand and the low supply resulting in more profit for sellers. Deregulation of the Kidney Market: If the United States allowed payment for kidney donations we could not still call it a “donation” because that defeats the purpose of what a donation is. A donation, in today's society, is seen as something given (usually in the form of a gift) to benefit or go towards a specific cause. The deregulated market is a system of market operation where “The government reduces or eliminates restrictions on industries” as stated by Kimberly Amedeo. The deregulated market removes components that get in the way of the markets ability to have a competitive advantage within the industry. The effects of a deregulated market on the supply and demand curve are a decrease in costs of goods to appeal to the consumers. Equity and Efficiency in the Kidney Market: In the current state of the kidney market, the people that benefit the most are the buyers/sellers in the market. Due to the low supply of kidneys and high demand in the market, the prices are higher, as depicted in Graph 1. According to Black Market Bodies, “GFI researchers found that kidney buyers are usually middle-to-high- income individuals from developed countries [such as the United States]”. Many times, a donated kidney is sold for more than 15 times the amount the donor was paid for it. The people

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