Surrogacy Contracting and Intermediation

  • Amrita Pramanick
  • Swapnendu Banerjee
Part of the India Studies in Business and Economics book series (ISBE)


We develop a model of commercial gestational surrogacy in which a childless couple approaches an infertility clinic for selection of a prospective surrogate, and for monitoring her further during the period of gestation. If the agency’s effort is noncontractible, then it is found to put in suboptimal monitoring effort, and hence the chapter focuses on the intermediate agency’s moral hazard. The intermediate agency’s monitoring is positively related to the surrogate’s altruism, for surrogates with low outside option. For surrogates with higher outside option, the agency’s monitoring is independent of the surrogate’s altruism and is only dependent on the surrogate’s reservation utility.


Assisted Reproductive Technology Moral Hazard Monitoring Effort Optimal Contract Incentive Compatibility Constraint 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.


  1. ACOG (2004) Surrogate motherhood. Ethics in obstetrics and gynecology (2nd ed). The American college of obstetricians and gynecologists (ACOG) committee opinion. p 397CrossRefGoogle Scholar
  2. Banerjee S (2013) Gestational surrogacy contracts: altruistic or commercial? A contract theoretic approach. Manch Sch 81(3):438–460CrossRefGoogle Scholar
  3. Banerjee S, Basu S (2009) Rent a womb: surrogate selection, investment incentives and contracting. J Econ Behav Organ 69:260–273CrossRefGoogle Scholar
  4. Ergas Y (2004) Babies without borders: human rights, human dignity and the regulation of international commercial surrogacy. Emory Int Law Rev 27(1):117–188Google Scholar
  5. Galbraith M, McLachlan HV, Swales JK (2005) Commercial agencies and surrogate motherhood: a transaction cost approach. Health Care Anal 13(1):11–31CrossRefGoogle Scholar
  6. Grayson DR (1998) Mediating intimacy: black surrogate mothers and the law. The Chicago University Press, Chicago. Accessed: 06/09/2013 07: 53Google Scholar
  7. Hatzis AN (2003) Just the oven: a law and economics approach to gestational surrogacy contracts. In: Boele-Woelki K (ed) Perspective for the Unification or harmonization of Family Law in Europe. Intersentia, AntwerpGoogle Scholar
  8. Indian Council of Medical Research (2004) National guidelines for accreditation, supervision and regulation of ART clinics in IndiaGoogle Scholar
  9. Krawiec KD (2009) Altruism and intermediation in the market for babies. Wash and Lee Law Rev 66(1):203–257Google Scholar
  10. Posner R (1989) The ethics and economics of enforcing contracts of surrogate motherhood. J Contemp Health Law Policy 5(21):21–31Google Scholar
  11. Smerdon UR (2008) Crossing bodies crossing borders: international surrogacy between the United States and India. Cumberland Law Rev 39(1):15–85Google Scholar
  12. Spar DL (2006) The baby business: how money, science, and politics drive the commerce of conception. Harvard Business School Press, BostonGoogle Scholar
  13. The National Health and Research Council, Government of Australia (2007) Ethical guidelines on the use of assisted reproductive technology in clinical practice and research, June 2007Google Scholar
  14. The Telegraph. Available at, various issues
  15. The Times of India (2015) Meeting the cost of conceiving, Jan 4. Available at

Copyright information

© Springer India 2016

Authors and Affiliations

  1. 1.Department of EconomicsJadavpur UniversityKolkataIndia

Personalised recommendations