Wagaroo update: designing a mechanism to identify responsible sources for pet dogs

In February, Christine Exley, a graduate student in economics at Stanford, introduced us to Wagaroo, a new market for pets, here. Since then, she has developed an interesting new mechanism to screen out puppy mills from her Owner Rehoming Program. Her Owner Rehoming Program is also serving as a substitute for animal shelters for some dogs.   As Wagaroo expands she and her colleagues hope this will help drive down the animal shelter population. (You can hear her in the last link below, a video...)  

She writes:

"Wagaroo makes it easy for people to find dogs from ethical sources.  We only post dogs from the shelters, rescues, responsible breeders, and families needing to rehome their dogs.  Dogs are adopted from the last group via our Owner Rehoming Program, which involves owners who need to find new loving homes for their dogs due to a variety of reasons, such as a death in the family, financial challenges, or having to move.  By using our Owner Rehoming Program, these owners keep their dogs until they find a new family for their dog – that is, they keep their dogs out of animal shelters.

"When we were developing our Owner Rehoming Program, we wanted to develop a system that keeps out puppy mills, places that cruelly mass-produce puppies in horrid conditions.   To do so, we thought of a mechanism that aligns incentives.  To illustrate, lets assume Alice wants to adopt a dog from Bob through our Owner Rehoming Program.   To finalize the adoption, Wagaroo asks Alice to pay a $100 adoption fee to Wagaroo, 50% of which is donated to a local animal shelter.  

"How does this keep out puppy mills?   First, Bob does not receive any money for his dog, so he clearly is not a puppy mill trying to make money by selling dogs.  Since Alice does not want a dog from a puppy mill, we can rely on her to not pay Bob.   Second, Bob wants to avoid problems that can arise when giving away dogs for free, such as them being used in dog fights or other cruel ways.   Because of this, we can rely on Bob making sure Alice pays the adoption fee to Wagaroo. This aligns incentives well, and the system is working wonderfully so far!

"If you would like to support our cause, please join in our crowdfunding campaign on indiegogo. You may also learn more about the economics behind Wagaroo in this video!"

Matching pets to homes: HBS celebrates Christine Exley and Wagaroo

HBS Working Knowledge interviews Christine Exley about Wagaroo, a marketplace for "rehoming" dogs who need a home:

Can Applied Economics Save Homeless Puppies?
"At a startup she co-founded while pursuing a doctorate in economics, Christine L. Exley is rescuing dogs with principles of market design"

"“Instead of people having to give their dog to the shelter, we can help them skip the shelter and directly rehome their dog into a new loving family,” says Exley, noting that the program also helps families follow best practices about rehoming their dogs via financial and informational resources, periodic tip emails, and individualized consultations where appropriate.
...
"For Exley and Battles, establishing safety meant preventing unethical breeders from posing as families needing to rehome their dogs. Wagaroo deals with that issue by not allowing owners in the Family2Family program to receive fees for their dogs. The logic: Puppy mills are in it for the money, which discourages them from posting on Wagaroo.

Some people don’t want pets to go to a family not willing to pay for it, and are hesitant to give their dogs away for free. Wagaroo agrees with this concern, Exley says, and thus encourages families to charge a different kind of rehoming fee that goes to Wagaroo, rather than to the previous owner. In return, Wagaroo uses the fee to help other dogs find homes and to support organizational operating costs."

My earlier posts about Wagaroo can be found here.

Wagaroo: A matching market for pet dogs from responsible sources

Christine Exley, a graduate student in Economics at Stanford, writes me about a new matching market, Wagaroo, that aims to cut the search costs for finding pet dogs from responsible sources. (NB, the site may not yet work with all browsers.) She writes:

"It is estimated that 23.5 million people plan to acquire a pet every year.  Of this, 1.5 million intend to buy their pet from a breeder, 5 million are committed to adopting their pet, and 17 million are undecided about the source for their new pet. At the same time, 3 million dogs and cats are killed every year in shelters because they cannot find a home. When you account for people acquiring dogs from shelters, rescue groups, the street (i.e., strays), friends, family members and purebred breeders, there are still over 6 million people acquiring dogs and cats from “other” sources. These other sources (as well as some of the listed sources) are likely puppy mills – places that mass-produce dogs for profit in horrid conditions.  

"Why do people get dogs from puppy mills and hence increase the demand for this inhumane practice in the face of so many adoptable dogs being killed in shelters? There are two leading answers.  First, separately identifying puppy mills from responsible breeders is challenging.   Both puppy mills and responsible breeders sell purebreds for upwards of $1,000, and puppy mills are quick to imitate responsible breeders by falsely advertising that their dogs are bred and cared for in good conditions.   Second, the search costs of acquiring dogs from responsible sources are incredibly high since no unified market exists.   While you may need to search dozens of responsible organizations before you find an available Black Labrador puppy, a quick Google search is guaranteed to show an available Black Labrador puppy from a puppy mill.  Wagaroo will change this through an online listing of dogs from all responsible sources – shelters, rescue groups, responsible breeders and owners needing to re-home their dogs. No puppy mills allowed!   While Wagaroo is in early stages, (ideas on how to perfectly separate puppy mills from responsible breeders are welcome), we look forward to building such a comprehensive listing and providing people with a simple, reputable way to find a dog from responsible sources.  If we make it easy, then we know that people will do the right thing.  "

Christine Exley is an EconomicRockstar: on the Economics of Volunteering, Market Failure in the Homeless Dog Market and Wagaroo

The Economic Rockstar podcast interviews  Christine Exley on the Economics of Volunteering, Market Failure in the Homeless Dog Market and Wagaroo

Here is Christine's web page: https://sites.google.com/site/clexley/