Behavioral economics and bioethics a journey

PALGRAVE ADVANCES IN BEHAVIORAL ECONOMICS Series Editor: John Tomer BEHAVIORAL ECONOMICS AND BIOETHICS A Journey Li Way Lee Palgrave Advances in Behavioral Economics Series Editor John Tomer Co-Editor, Journal of Socio-Economics Department of Economics & Finance Manhattan College Riverdale, NY, USA This ground breaking series is designed to make available in book form unique behavioral economic contributions It provides a publishing opportunity for behavioral economist authors who have a novel perspective and have developed a special ability to integrate economics with other disciplines It will allow these authors to fully develop their ideas In general, it is not a place for narrow technical contributions Theoretical/conceptual, empirical, and policy contributions are all welcome More information about this series at http://www.palgrave.com/gp/series/14720 Li Way Lee Behavioral Economics and Bioethics A Journey 7  THE PUBLIC HEALTH ROULETTE  MAX Ro − co To Ry − cy Ty 57 (1) with respect to Ry and Ro, subject to a resource constraint R = Ry + Ro, where Ry  Ro  Ty To  cy  co  resource for Junior (the young generation) if bargaining succeeds resource for Senior (the old generation) if bargaining succeeds Junior’s life expectancy  Senior’s life expectancy Junior’s resource if bargaining fails Senior’s resource if bargaining fails In the Nash Solution, Junior’s and Senior’s annual incomes are, respectively: Ry R + cy Ty − co To = Ty 2Ty R − cy Ty + co To Ro = To 2To (2) Case 1 How an increase in Junior’s life expectancy affects income distribution ∂ Ry Ty ∂Ty =− ∂ Ro To ∂Ty Ry Ty − cy Ty =−