TY  - BOOK
AU  - Agarwal,Nikhil
AU  - Ashlagi,Itai
AU  - Azevedo,Eduardo
AU  - Featherstone,Clayton R.
AU  - Karaduman,Ömer
ED  - National Bureau of Economic Research.
TI  - Market Failure in Kidney Exchange
T2  - NBER working paper series
PY  - 2018///
CY  - Cambridge, Mass.
PB  - National Bureau of Economic Research
N1  - June 2018; Hardcopy version available to institutional subscribers
N2  - We show that kidney exchange markets suffer from market failures whose remedy could increase transplants by 30%-63%. First, we document that the market is fragmented and inefficient: most transplants are arranged by hospitals instead of national platforms. Second, we propose a model to show two sources of inefficiency: hospitals only partly internalize their patients' benefits from exchange, and current platforms suboptimally reward hospitals for submitting patients and donors. Third, we calibrate a production function and show that individual hospitals operate below efficient scale. Eliminating this inefficiency requires either a mandate or a combination of new mechanisms and reimbursement reforms
UR  - https://www.nber.org/papers/w24775
UR  - http://dx.doi.org/10.3386/w24775
ER  -