Rent a womb: Surrogate selection, investment incentives and contracting
AbstractWe develop a model of gestational surrogacy, in which a childless couple faces heterogeneous prospective surrogates. High-type surrogates add more value but also have higher outside options. Surrogates can make specific investments for the overall well-being (care) of the unborn child. We show that, under noncontractibility, surrogates invest less (take less care) than the first-best. Couples are also more likely to choose low-type surrogates, who need less compensation for foregoing cheaper outside options. Hence the popular practice of making surrogacy contracts unenforceable might put the unborn child at risk.
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Bibliographic InfoArticle provided by Elsevier in its journal Journal of Economic Behavior & Organization.
Volume (Year): 69 (2009)
Issue (Month): 3 (March)
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Web page: http://www.elsevier.com/locate/jebo
Surrogate Intended parents Noncontractibility Under-investment;
Other versions of this item:
- Swapnendu Banerjee & Sanjay Basu, 2007. "Rent a Womb: Surrogate Selection, Investment Incentives and Contracting," Working Papers id:1021, eSocialSciences.
- C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models &bull Diffusion Processes
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