Colloquium: Closing Multiple Sanction Loopholes / The Impact of Policy Design on Organ Donation

Abstract Marcel Thum
Closing Multiple Sanction Loopholes
The enforcement of international sanctions is frequently undermined by multiple third-party sanction-breaking countries. This paper examines how a sanctioning country can optimally negotiate with several such loophole countries to close the enforcement gaps. We compare several sequential and simultaneous bargaining strategies. Suitably chosen sequencing, but also simultaneous negotiations under the Single-Undertaking Principle can minimize the cost to the sanctioning country by creating competitive pressure among the loophole countries. We find that, if the desire to make the sanctioning regime effective is sufficiently high, the ultimate goal of closing the sanction loopholes is achieved for all sequencing rules of ultimatum bargaining we consider. However, the equilibrium size and distribution of compensation among loophole countries differ. We characterize the optimal sequential strategy and the optimal simultaneous-offer strategy. Furthermore, for well-chosen negotiation strategies, the sum of compensation paid to multiple loophole countries is lower than if there is only one loophole country. 

Abstract Selina Schulze Spüntrup
The Impact of Policy Design on Organ Donation
In light of the persistent shortage of organ donations, several countries have modified their organ donation laws. The first paper analyzes reforms introducing an opt-out system, which makes every deceased person a potential donor unless they have objected. Synthetic control estimates for Argentinaand Wales indicate that these countries achieved substantially higher organ donation rates after adopting opt-out legislation compared to the rates without the reform, suggesting that implementing opt-out effectively contributes to alleviating the organ shortage. The second paper focuses on Italy’s gradual roll-out of a prompted choice policy, integrating the question of donation preference into the identity card renewal process. Employing a staggered difference-in-differences design, we find that municipalities incorporating the question saw a significant increase in consent registrations, even though individuals retained the option to abstain from making a choice. We also provide novel evidence that regions with higher levels of registered consent exhibit higher actual organ donation rates. Together, the studies highlight how different choice architectures affect organ donation outcomes.