Centre
for Development Economics
and
Department of Economics, Delhi School of Economics
ANNOUNCE
A SEMINAR
Gestational
Surrogacy Contracts:
Altruistic or Commercial?
A Contract Theoretic Approach
by
Swapnendu Banerjee
West
Bengal State University, Kolkata
On
Thursday, August 27, 2009 at 3:00 p.m.
Venue : New Seminar Room [First Floor]
Department of Economics, Delhi School of Economics
All are cordially invited
Abstract
We in this paper provide an analytical structure to endogenize the optimal gestational surrogacy contract in terms of a simple moral hazard framework. We show 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. We also explore alternative model specifications and find a case where commercial surrogacy is always optimal irrespective of altruism, outside option and social ignominy.