Microeconomics 2nd Edition by Douglas Bernheim

Exercise 2

Some countries (including the United States) require explicit consent for an organ donation; others presume that an individual consents unless he or she explicitly opts out. In countries that require explicit consent, fewer than 30 percent of adults are eligible for organ donation. In most opt- out countries, more than 98 percent are eligible. Interpret this observation in light of the default effect. Why do you think the effect is so strong with regard to organ donation Can you reconcile this pattern with standard economic theory