Repugnant Market

Published Mar 22, 2024

Definition of Repugnant Market

A repugnant market is one where certain goods or services are considered morally or ethically reprehensible to sell or buy, though there may be willing sellers and buyers. These are transactions that, despite the potential for mutual benefit, are socially disapproved or outlawed due to ethical concerns. This concept illustrates the clash between economic efficiency and societal values, where some exchanges, regardless of demand, are restricted due to moral judgments.

Example

One illustrative example of a repugnant market is the trade in human organs. While there is a critical shortage and high demand for organs for transplantation to save lives, many societies prohibit the sale of human organs. The legal and ethical frameworks in these societies argue that putting a price on human body parts commodifies life itself and can lead to exploitation and inequality. Consequently, even though a market exists in terms of supply and demand, the societal consensus deems such transactions repugnant, and they remain heavily regulated or illegal.
Another example can be found in surrogate parenting contracts. While legal in some countries, others find the commercial aspect of surrogacy—the idea of paying for a woman to carry and give birth to a child for someone else—morally objectionable. Critics argue it manipulates women’s bodies and turns children into commodities.

Why Repugnant Markets Matter

Understanding repugnant markets is crucial for economists, policymakers, and ethicists because it highlights the complex interplay between market forces and moral values. These markets raise significant questions about how societies draw boundaries around what is considered acceptable for exchange and how these boundaries affect those in need of prohibited goods or services. For example, the prohibition of selling organs has led to a global shortage, prompting debates around ethical frameworks for potentially legalizing and regulating such markets to save lives.
Moreover, repugnant markets also challenge the traditional economic notion that voluntary transactions are inherently beneficial because they reflect the preferences of buyers and sellers. In these cases, broader societal impacts, ethical considerations, and the potential for exploitation or harm are paramount.

Frequently Asked Questions (FAQ)

What are the ethical arguments against repugnant markets?

Ethical arguments against repugnant markets often revolve around issues of exploitation, consent, and commodification. Critics argue that allowing markets in sensitive areas can exploit vulnerable populations, pressure individuals into making decisions against their best interests, and reduce human life or dignity to commodities. The concern is not always with the transaction per se but with its implications on societal values and the potential for harm.

Can repugnant markets become acceptable over time?

Yes, societal attitudes towards what is considered repugnant can and do change over time. For example, the life insurance industry was once deemed repugnant because it was thought to profit from death. However, perceptions shifted as the social and economic benefits became evident, and it is now a widely accepted and regulated industry. Changes in laws, cultural attitudes, and ethical considerations can all contribute to the reevaluation of certain markets.

Are there any examples of regulated repugnant markets?

Yes, in some cases, previously repugnant markets have been regulated and legitimized to address demand and safeguard participants. For example, the gambling and cannabis industries were once widely considered repugnant but have seen legalization and regulation in various jurisdictions. These shifts often involve implementing strict oversight to mitigate ethical concerns and protect against exploitation or other harms.

How do economists study or approach repugnant markets?

Economists study repugnant markets by analyzing the impact of restrictions on supply and demand, exploring the underground activities that may emerge in the absence of a legal market, and assessing potential frameworks for regulation. They may also examine the ethical implications of allowing such markets to operate openly. While traditional economic analysis focuses on efficiency and welfare outcomes, studying repugnant markets often requires a multidisciplinary approach that includes ethics, law, and social sciences to fully understand the implications of allowing or prohibiting these transactions.
###