Sunday, January 4, 2015

Can high pay be coercive and repugnant?

Sandro Ambuehl* will be presenting this paper at the AEA meetngs today:

More Money, More Problems? Can High Pay be Coercive and Repugnant?
By SANDRO AMBUEHL, MURIEL NIEDERLE, AND ALVIN E. ROTH

"Sometimes two people would voluntarily agree to transact a good or service for compensation, but an unaffected third party would prefer to prevent this transaction. Paid kidney donation, surrogate motherhood, prostitution, and paid participation in medical trials are examples.  We use a vignette study to explore how respondents' assessments of such repugnant transactions change as we alter the seller's compensation. We then sketch a model of how people judge the morality of such transactions."


*You'll have to wait until next year to hire him.

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