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Organ Shortage - Microeconomics

In: Business and Management

Submitted By cmou5775
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The Organ Shortage Problem 1) Current organ market in US In US, the National Organ Transplantation Act (NOTA), which since 1984 has forbid the buying and selling of human organs. Established by NOTA in 1984 under HRSA is the Organ Procurement Transplantation Network (OPTN). The primary purpose of OPTN is to operate a fair system for allocating organs donated for transplantation; maintain and monitor a waiting list of potential recipients, match potential recipients with organ donors according to established medical criteria. Controls listing and de-listing of transplant patients, facilitate efficient/effective placement of organs for transplantation, and to increase organs donated. However, from our reading and further research, using the most commonly transplanted organ kidney as an example, we found out that as of 2012, 95000 Americans were on the waiting list for new kidney. That year only 16500 transplant operations were performed. Our research data shows currently in the US, the average waiting time for a kidney is 4.5 years. This situation in comparison to 10 years ago is far worse. Data shows that 10 years ago, the average waiting for a kidney of 2.9 years. In addition to the long waiting period, the waiting period also varies from state to states. Therefore, as Becker suggested, the current system so far have been inadequate to end the shortage. Base on data provided from our reading, current organ market in US can be demonstrated in below two D-S diagrams:

The above D-S demonstrates if “willingness” is not suppressed. So people are willing to pay for an organ, but are not able to pay for an organ due to Government restriction.

25000 Price 20000 15000 10000 5000 0 0

Supply

Demand

Quantity 10000 20000 30000 40000 50000

This D-S demonstrates when Government is in…...

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