Microeconomics
Question 1
Titmuss believes the commercialization of blood market is a wrong move. He thinks that in terms of efficiency in the economy, blood is highly wasteful, and it is administratively inefficient and may create more bureaucracy. However, he finds it more costly compared to other blood transfusion systems in other countries such as Britain, and argues that the quality of blood being distributed is usually compromised to some extent and a number of patients may risk losing their lives when such blood are transmitted in them. Titmuss argued this point saying that the money being offered to blood donors reduced the level of donors who donated blood for the sake of helping lives, therefore living that activity to those donating blood for money without caring the quality of their blood and whether it will help or deteriorate someone’s health.
Question 2
Arrow criticized Titmuss interpretations to his findings, arguing that the market for blood supply could help remove cases of contaminated blood and improve the level of quality blood being supplied. Arrow’s point was that it is not true that more people would deter from donating blood due to the exchange of money. He believes that if a person was willing to help other lives by donating blood, they should consider taking blood tests privately before donating the blood. However, if a person’s agenda is to help others while others is to get the money, then nothing will change their blood contribution willingness.
Question 3
It is important for all blood suppliers to have set rules that would help blood receivers to be sure that the blood being brought to them is examined and is not contaminated in any way. Therefore, the government can play a major role to control blood transmission.