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Efficient and Incentive‐Compatible Liver Exchange

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  • Haluk Ergin
  • Tayfun Sönmez
  • M. Utku Ünver

Abstract

Liver exchange has been practiced in small numbers, mainly to overcome blood‐type incompatibility between patients and their living donors. A donor can donate either his smaller left lobe or the larger right lobe, although the former option is safer. Despite its elevated risk, right‐lobe transplantation is often utilized due to size‐compatibility requirement with the patient. We model liver exchange as a market‐design problem, focusing on logistically simpler two‐way exchanges, and introduce an individually rational, Pareto‐efficient, and incentive‐compatible mechanism. Construction of this mechanism requires novel technical tools regarding bilateral exchanges under partial‐order‐induced preferences. Through simulations we show that not only can liver exchange increase the number of transplants by more than 30%, it can also increase the share of the safer left‐lobe transplants.

Suggested Citation

  • Haluk Ergin & Tayfun Sönmez & M. Utku Ünver, 2020. "Efficient and Incentive‐Compatible Liver Exchange," Econometrica, Econometric Society, vol. 88(3), pages 965-1005, May.
    • Handle: RePEc:wly:emetrp:v:88:y:2020:i:3:p:965-1005
    DOI: 10.3982/ECTA16400
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    Cited by:

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    3. Tayfun Sönmez & M. Utku Ünver, 2023. "Influencing Policy and Transforming Institutions: Lessons from Kidney/Liver Exchange," NBER Chapters, in: New Directions in Market Design, National Bureau of Economic Research, Inc.
    4. Orhan Aygun & Bertan Turhan, 2020. "Designing Direct Matching Mechanism for India with Comprehensive Affirmative Action," Papers 2004.13264, arXiv.org, revised Dec 2021.
    5. Li, Mengling & Riyanto, Yohanes E. & Xu, Menghan, 2022. "Remedying adverse selection in donor-priority rule using freeze period: Theory and experiment," Journal of Economic Behavior & Organization, Elsevier, vol. 194(C), pages 384-407.
    6. Aygün, Orhan & Turhan, Bertan, 2021. "How to De-reserve Reserves," ISU General Staff Papers 202104130700001123, Iowa State University, Department of Economics.
    7. Altuntaş, Açelya & Phan, William & Tamura, Yuki, 2023. "Some characterizations of Generalized Top Trading Cycles," Games and Economic Behavior, Elsevier, vol. 141(C), pages 156-181.
    8. Kim, Jaehong & Li, Mengling & Xu, Menghan, 2021. "Organ donation with vouchers," Journal of Economic Theory, Elsevier, vol. 191(C).
    9. Ni, Yinan & Barth, James R. & Sun, Yanfei, 2022. "On the dynamic capital structure of nations: Theory and empirics," Research in International Business and Finance, Elsevier, vol. 62(C).

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    More about this item

    JEL classification:

    • D47 - Microeconomics - - Market Structure, Pricing, and Design - - - Market Design
    • C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory

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