"How Moral Panic Creates Black Markets," interview by Nick Gillespie about Moral Economics

Nick Gillespie, from Reason Magazine,  interviews me about "How Moral Panic Creates Black Markets"

"Nobel Prize-winning economist Alvin E. Roth discusses the moral limits of markets, how bans create black markets, and why harm reduction often works better than prohibition."

"Today's guest is Nobel Prize-winning economist Alvin E. Roth, the author of Moral Economics: From Prostitution to Organ Sales, What Controversial Transactions Reveal About How Markets Work.

He talks with Nick Gillespie about why some voluntary transactions provoke moral outrage even when no one is being directly harmed. Roth explains why black markets often emerge when governments try to ban activities with persistent demand, why both markets and prohibitions require social support to function, and how unintended consequences can make moralistic policies backfire. They discuss the war on drugs, prostitution, surrogacy, same-sex marriage, price gouging, and why Iran remains the only country in the world with a legal market for kidney donors.

They also explore Roth's work designing kidney exchange networks and school choice systems, how digital technology and private transactions make certain bans harder to enforce, and why harm reduction may work better than prohibition in areas ranging from drug policy to sex work."

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Survey of economists, concerning Living-Donor Kidney Transplants

Romesh Vaitilingam writes to draw my attention to the recent survey of economists, concerning Living-Donor Kidney Transplants, conducted by the Clark Center for Global Markets at Chicago Booth.

He says 

" I’m writing now as I thought you might be interested in the results of this survey, which was inspired by reading your recent Wash Post column."*

Below are the three questions they asked, and the results to each one. At the survey link above you can find the responses of the individual economists surveyed.

 

 

 Only one economist appeared to be skeptical about kidney exchange, and I was surprised at who it was (respondents may answer these questions very quickly...).

 

The next question concerns the End Kidney Deaths Act, which was introduced to the respondents at these links:

"There is draft legislation in Congress to increase the supply of human kidneys by encouraging donations to strangers: https://www.congress.gov/bill/119th-congress/house-bill/2687

"It is summarized here: https://www.hawaiibusiness.com/bipartisan-bill-aims-to-prevent-kidney-deaths-by-compensating-donors/ "

 

 

 The End Kidney Deaths Act gets a good deal of support (above) while an unspecified decentralized market gets considerably less support, below.

 

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*Earlier posts

Friday, May 8, 2026 It’s time to carefully but urgently rethink payments to kidney donors. My op-ed in the Washington Post

 

The Ig Nobel Prize Ceremony Is Moving to Europe (after 35 years in the USA)

A sign of the times:( 

 The Ig Nobel Prize Ceremony Is Moving to Europe (after 35 years in the USA) 

 

 

 

"Ig Nobel Prizes honor achievements that make people LAUGH, and then THINK. Organized by the magazine Annals of Improbable Research (AIR), they celebrate the unusual, honor the imaginative, and spur interest in science. Winners travel to the ceremony from around the world, to collect their prizes and be showered with paper airplanes. The first 35 ceremonies (1991-2025) all took place in Massachusetts: at Harvard University, MIT [The Massachusetts Institute of Technology], and Boston University. But now the ceremony is moving to Europe.

"Marc Abrahams, founder and emcee of the ceremony (and editor of the magazine), explains: “During the past year, it has become unsafe for our guests to visit the country. We cannot in good conscience ask the new winners, or the international journalists who cover the event, to travel to the USA this year.”

This year’s ceremony is being produced in collaboration with institutions of the ETH Domain and the University of Zurich. Abrahams explains: “The city of Zurich and its institutions rapidly moved mountains (only metaphorically — in Switzerland it is illegal to physically move mountains) and committed to make this possible. Switzerland has nurtured many unexpected good things —Albert Einstein’s physics, the world economy, and the cuckoo clock leap to mind — and is again helping the world appreciate improbable people and ideas.”

 

French nicotine pouch ban is ‘attack on Swedish way of life’

 Is Swedish nicotine like French wine?

The FT has the story:

"French nicotine pouch ban is ‘attack on Swedish way of life’, minister says. Stockholm smoulders over France’s ‘absurd’ penalties of up to five years in prison for cigarette alternatives, by Mari Novik in Strasbourg and Sarah White in Paris

 "A Swedish minister has accused France of mounting “an attack on the Swedish way of living” with its ban on nicotine pouches, setting aflame a single market fight over how governments should regulate smoke-free alternatives to tobacco.

"France last month implemented one of Europe’s strictest bans on the pouches, a flavoured sachet that users tuck under their lip to release nicotine.

"France’s decree goes beyond other EU countries’ prohibitions by banning not just sales but import, possession and use of the pouches. A Swede carrying a tin of pouches legally bought at home could face French penalties of up to five years in prison and a €375,000 fine.
 

“It is as if we would prohibit French baguettes or French wine in Sweden,” Swedish trade minister Benjamin Dousa told the FT. “It is absurd.”

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Earlier:

Tuesday, May 19, 2026  WHO reports on the global growth of nicotine pouches

Mark Granovetter and I discuss Moral Economics

 Speaking with the great sociologist Mark Granovetter gave me the opportunity to tell the joke "“Economists study how people make choices; sociologists study why people don’t have choices," since Moral Economics is about the controversial markets over which society struggles with which choices should be allowed and which should be banned.

 Stanford's Center for the History of Capitalism sponsored the conversation, and here it is on YouTube, but it's just a podcast, there's audio of our conversation, but no video. 

 

Here's an alternative photo from  Stanford's History of Capitalism program:

 

Work and Moral Economics: Two Podcasts (Dart Lindsley's "Work for Humans" and Ben Zweig's "The Economics of Work).

Two podcasts interview me about Moral Economics, starting from a concern with work. 

 Dart Lindsley interviews me on his Podcast "Work for Humans":

Moral Economics: Where Human Values Shape Markets | Alvin Roth
Work For Humans 

Here it is on every platform.  

 

"A kidney transplant does not work like buying a gallon of milk. Neither does hiring or getting into a medical residency. In these markets, both sides care deeply about who they end up with, and a good outcome depends on more than money. 

Alvin Roth has spent his career studying what makes those systems succeed or fail. His work designing kidney exchange programs showed that even when people desperately want to help each other, the market can still break down unless the rules create the right kind of match. In this episode, Dart and Al discuss matching markets, moral economics, and the hidden rules that shape opportunity, fairness, and work itself.

Alvin Roth is an economist and professor at Stanford University best known for his work on market design and matching theory. He received the 2012 Nobel Prize in Economic Sciences for his work on stable matching and the design of markets used in medical residencies, school choice, and kidney exchange.

In this episode, Dart and Al discuss:
- Why some markets depend on matching
- Why fit matters more than money
- What makes a market stable
- Why real markets are messy
- The difference between theory and engineering
- What “repugnant transactions” are
- Why societies ban some exchanges
- How social norms shape markets
- Why work is also a matching problem
- And other topics…

Alvin Roth is the Craig and Susan McCaw Professor of Economics at Stanford University and recipient of the 2012 Nobel Memorial Prize in Economic Sciences, awarded with Lloyd Shapley for the theory of stable allocations and the practice of market design. His work has helped design matching systems for medical residencies, public school admissions, and kidney exchange programs. He is the author of Who Gets What — and Why and Moral Economics: Why Good and Bad Markets Exist.

Resources Mentioned:
Al’s Book, Moral Economics: From Prostitution to Organ Sales, What Controversial Transactions Reveal About How Markets Work

Al’s Book, Who Gets What — and Why

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And here's Ben Zweig's The Economics of Work:

  "It was so fun talking to Alvin Roth, winner of the 2012 Nobel Prize in Economics. "One of my favorite books of all time is Who Gets What and Why, which has shaped the way I view labor markets. His second book, Moral Economics, came out last week and it’s so so good - endlessly thought provoking, funny, and sharp. In the podcast, we talk about controversial markets and what makes something repugnant, how to think about exploitation and coercion, and what that means for labor markets. "Check out the latest episode of The Economics of Work and Al's new book Moral Economics! "Moral Economics from Basic Books: Amazon: https://a.co/d/0cu6ZCLm Podcast Episode: Apple: https://lnkd.in/esVGQQx5 Spotify: https://lnkd.in/e4sr844Q Youtube: https://lnkd.in/eif7DHMS"