Individuals have two kidneys but most of us need only one


Individuals have two kidneys, but most of us need only one. People who have lost both kidneys through accident or disease must be hooked up to a dialysis machine, which cleanses waste from their bodies. Say a person who has two good kidneys offers to sell one of them to someone whose kidney function has been totally destroyed. The seller asks $30,000 for the kidney, and the person who has lost both kidneys accepts the offer.

a. Who benefits from the deal?

b. Who is hurt?

c. Should a society allow such market transactions? Why?

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Econometrics: Individuals have two kidneys but most of us need only one
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