Gestational Surrogacy Contracts: Altruistic or Commercial ?
The paper provides an analytical structure to endogenize the optimal gestational surrogacy contract in terms of a simple moral hazard framework. The study shows that altruistic surrogacy is optimal only if the surrogate has lower outside option and is sufficiently altruistic. Otherwise commercial surrogacy is optimal. We also show that for lower outside option greater social ignominy makes the surrogacy contract relatively more altruistic but the reverse happens when the surrogate has higher outside option. The author explores alternative model specifications and find a case where commercial surrogacy is always optimal irrespective of altruism, outside option and social ignominy.
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- Patrick Bolton & Mathias Dewatripont, 2005.
MIT Press Books,
The MIT Press,
edition 1, volume 1, number 0262025760.
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LSE Research Online Documents on Economics
2202, London School of Economics and Political Science, LSE Library.
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- Kevin Murdock, 2002. "Intrinsic Motivation and Optimal Incentive Contracts," RAND Journal of Economics, The RAND Corporation, vol. 33(4), pages 650-671, Winter.
- Roland Bénabou & Jean Tirole, 2003. "Intrinsic and Extrinsic Motivation," Review of Economic Studies, Oxford University Press, vol. 70(3), pages 489-520.
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