Nicola Lacetera (University of Bologna) and Mario Macis (Johns Hopkins University)

Repugnant Transactions

Abstract: Repugnant Transactions are exchanges that, despite potential mutual gains for the parties involved in them,  raise strong moral concerns in the population and, as such, may be prohibited or strictly regulated. Examples include monetary compensation to blood or organ donors, markets for sex, gestational surrogacy, recreational drugs or same-sex marriages. Research research in economics is investigating whether the moral opposition to these and other trades is “absolute”, or it is responsive to considerations about the tradeoffs between prohibition on the one hand, and the potential welfare gains from legalization.  This seminar will review these studies and outline theoretical and empirical frameworks that can inform future inquiry.