Repugnant market

A repugnant market is an area of commerce that is considered by society to be outside of the range of market transactions and that bringing this area into the realm of a market would be inherently immoral or uncaring. For example, many people consider a market in human organs to be a repugnant market ^[1] or the ability to bet on terrorist acts in prediction market to be repugnant. Others consider the lack of such markets to be even more immoral and uncaring, as trade bans (e.g. in organ transplants ^{[2] [3] [4]} and terrorism information) ^{[5] [6]} can create avoidable human suffering.

Nobel Laureate Alvin Roth (2007) ^[7] "introduced in the economics literature the concept of "repugnance" for a transaction as the aversion toward other individuals engaging in it, even if the parties directly involved benefit from that trade (i.e. "There are some things no one should be allowed to do"). Repugnance considerations have important consequences on the types of markets and transactions that we observe and, as such, they impose a challenge for policy and market design." ^[8]

Examples

The repugnance of markets varies according to time, culture, and economic development, among other factors. ^[9] Slavery is a market currently considered repugnant while for most of recorded history before c. 1000 AD it was considered acceptable, and was still considered acceptable against certain people groups until c. 1800 AD. Examples of markets considered repugnant at one time or place include:

• Pregnancy/early childhood
  • Abortion ^[9]
  • Adoption
  • Egg donation for research purposes
  • Fetal organs and aborted fetal tissue ^[10]
  • Surrogacy, legal in India and most states in the U.S. (but banned in France and Japan) ^{[9] [11]}
• Drugs and food
  • Illegal drug trade
  • Horse meat, whale meat, dog meats (e.g. in California), ^[12] cat meat, beef in India, and the meat of endangered animals.
• Labour
  • Child labor
  • Slavery or indentured servitude
• Social status/political power
  • Citizenship and/or immigration ^[13] (Investor visas such as the U.S. E-2 visa are exceptions. Several notable economists have proposed selling citizenship) ^[14]
  • Education ^{[15] [ failed verification ]}
  • Lobbying ^{[ citation needed ]}
  • Military mercenaries
  • Political corruption activities, such as bribery and influence peddling
  • Vote buying ^[16]
• Money/speculation
  • Currency speculation ^{[ citation needed ]}
  • Gambling
  • Predatory lending, especially mortgage lending^{[ citation needed ]}
  • Pyramid schemes and multi-level marketing
  • Selling short ^{[ citation needed ]}
  • Ticket touting in sports events and concerts ^[17]
  • Usury (has never been allowed by Islam and was historically banned in Christian countries)

Christ drives the Usurers out of the Temple, a woodcut by Lucas Cranach the Elder in Passionary of Christ and Antichrist.

• Economic corruption/media power
  • Payola ^{[ citation needed ]}
  • Product placement in some European countries ^[19]
  • Radio spectrum ^[20]
• Sex
  • Pornography (repugnant in some countries/cultures, especially paraphiliac pornography)
  • Prostitution ^{[9] [21]}
    • Virginity ^[22]
• Other
  • Certain prediction markets (e.g. 'terrorism futures market')^{[ citation needed ]}
  • Healthcare ^[23]
    • Medical debt
  • Organ trade and organ donation from a live donor (Turkey and the Philippines are notable exceptions) ^{[24] [25] [26]}
  • Cadavers
  • Life insurance ^{[ citation needed ]}
  • Real estate in Cuba ^[27]
  • Real estate broker/agent profession or flipping real estate^{[ citation needed ]}
  • Metered parking ^[28]
  • Contract killing
  • Simony
  • Odious debt

See also

• Prohibitionism
• Repugnancy costs
• Taboo
• Yuck factor

References

1. Elías, Julio J., Nicola Lacetera, and Mario Macis. 2019. "Paying for Kidneys? A Randomized Survey and Choice Experiment." American Economic Review, 109 (8): 2855-88.
2. Murphy, Stephanie (2005-01-01). "I'll Give You My Heart..." Retrieved 2008-07-08.
3. Kaserman, David (2002-05-16). "The AMA's Opposition to Organ Markets: Time for a Change" . Retrieved 2008-07-08.
4. "Audience Chooses Market Solution to Organ Shortage in Final Intelligence Squared U.S. Debate of the Season". Market Wire. May 2008. Archived from the original on 2012-07-09. Retrieved 2008-07-08.
5. Looney, Robert (September 2003). "DARPA's Policy Analysis Market for Intelligence: Outside the Box or Off the Wall?". Strategic Insights. II. Archived from the original on 2008-10-08. Retrieved 2008-07-08.
6. Hanson, Robin (July 2007). "The Policy Analysis Market A Thwarted Experiment in the Use of Prediction Markets for Public Policy". MIT Innovations: Technology, Governance, Globalization. 2 (3): 73–88. doi: 10.1162/itgg.2007.2.3.73 .
7. Roth, AE (2007). "Repugnance as a Constraint on Markets" (PDF). Journal of Economic Perspectives. 21 (3): 37–58. doi:10.1257/jep.21.3.37. Archived from the original (PDF) on 2008-05-09. Retrieved 2008-05-15.
8. Elías, Julio J., Nicola Lacetera, and Mario Macis. 2017. "Understanding repugnance: Implications for public policy." Working Papers: Serie Documentos de Trabajo 614, Universidad del CEMA.
9. Elías, Julio J., Nicola Lacetera, Mario Macis, and Paola Salardi. 2017. "Economic Development and the Regulation of Morally Contentious Activities." American Economic Review, vol. 107(5), pages 76-80, May.
10. Are we ready for a market in fetal organs?
11. Gentleman, A (2008-03-10). "India Nurtures Business of Surrogate Motherhood". The New York Times . Retrieved 2008-05-15.
12. Roth, AE (2007). "Repugnance as a Constraint on Markets" (PDF). Journal of Economic Perspectives. 21 (3): 37–58. doi:10.1257/jep.21.3.37. Archived from the original (PDF) on 2008-05-09. Retrieved 2008-05-15.
13. Freeman, Richard B. (2006). "People Flows In Globalization". Journal of Economic Perspectives . 20 (2): 145–170. doi: 10.1257/jep.20.2.145 . S2CID   154961908.
14. Houlihan, Patricia (2008-06-07). "Citizenship for Sale?". Chicago GSB Magazine. Archived from the original on 2008-08-02. Retrieved 2008-08-08.
15. "The Universal Declaration of Human Rights - Article 26".{{cite journal}}: Cite journal requires |journal= (help)
16. Schaffer, FC; Schedler A (2005-11-28). "What is Vote Buying? The Limits of the Market Model" (PDF). Stanford University, Department of Political Science. Archived from the original (PDF) on 2008-02-29. Retrieved 2008-05-15.
17. "Ticket Scalping: A Repugnant Transaction". 2012.
18. The references cited in the Passionary for this woodcut: 1 John 2:14–16, Matthew 10:8, and The Apology of the Augsburg Confession, Article 8, Of the Church
19. "In the picture". The Economist . 2007-11-01. Retrieved 2008-05-15.
20. Hazlett, T (2009-12-16). "Ronald Coase and the radio spectrum". The Financial Times . Retrieved 2009-12-17.
21. Elías, Julio J., Nicola Lacetera, and Mario Macis. 2015. "Sacred Values? The Effect of Information on Attitudes toward Payments for Human Organs." American Economic Review, vol. 105(5), pages 361–365, May.
22. Chung, Frank (27 March 2018). "UK student sells virginity to 'Hollywood actor' for $1.9 million on controversial website" . Retrieved 28 March 2018.
23. "The Universal Declaration of Human Rights - Article 25".{{cite journal}}: Cite journal requires |journal= (help)
24. Satel, S (2007-12-16). "Desperately Seeking a Kidney". The New York Times . (subscription only)
25. Hippen, BE (2008-03-20). "Organ Sales and Moral Travails: Lessons from the Living Kidney Vendor Program in Iran". Cato Institute . Retrieved 2008-05-15.
26. Dubner, SJ (2008-04-29). "Human Organs for Sale, Legally, in ... Which Country?". The New York Times Freakonomics Blog. Retrieved 2008-05-15.
27. Lacey, M (2008-01-28). "With a Whisper, Cuba's Housing Market Booms". The New York Times . Retrieved 2008-05-15.
28. Crossen, C (2007-06-30). "When Parallel Parking Was New and Meters Seemed Un-American". The Wall Street Journal . Retrieved 2008-05-15.

External links

• Transcript of BBC broadcast on repugnant markets
• Google video on Market Failure and Market Design