>JC,
> I am not at my home computer so I cannot reply to the list. Your
>solution of ex-ante payment (premortem) for an organ creates a moral hazard
>problem, doesn't it?
>
>Mark Steckbeck
>
Mark,
I assume you mean that individuals who sell their organs in good health will
then change their behavior to harm the organs.
First, I don't think this would happen. As an idividual you still bear the
costs of damaging your organs. Also, this can be solved with yearly checkups
with exit clauses in contracts that pay out in installments. This also makes
the organs of religious groups that disallow drinking and smoking more
valuable. Their commitment to good health is more credible than others.
Second, wealth and health are positively ocrrelated. The increased wealth
from pre-sale of organs will likely increase the health of the donor and
organs.
On Jason's point of the difficulty of pricing organs due to risk.
I don't think this is a problem. Insurance companies make such calculations
all the time to assign premiums.
JC
