The Economics of Sterilization
When it comes to sterilization, Denmark has had a rather turbulent history. In 1929, in the midst of rising social concerns regarding an increase in sex crimes and general “degeneracy,” the Danish government passed legislation bordering on eugenics, requiring sterilization in some men and women. Between 1929 and 1967, while the legislation was active, approximately 11,000 people were sterilized – roughly half of them against their will.
Then, the policy was changed so that sterilization was still available, still free, but not involuntary. And as you might expect, the sterilization rate in Denmark dropped down dramatically – and stayed this way until 2010.
Now we come to 2010. In only a few short months, the sterilization rate increased fivefold. No, this was not a regression to the old legislation; it was a result of free choice…
What happened? Last year, the Danish government announced that sterilization, which had been free, would cost at least 7,000 kroner (~$1,300) for men and 13,000 kroner (~$2,500) for women as of January 1st, 2011. Following the announcement, doctors performing sterilizations found that their patient load suddenly surged. People were scrambling to get sterilized while it was still free.
Now, it could be that the people who were already planning on getting sterilized at some point in the future just made their appointments a bit sooner, and conveniently saved some money. But I can also imagine that (much like our research on free tattoos) there were many people who did not really think much about sterilization before the price change, but were so averse to giving up such a good deal that it pushed them to take the offer and undergo a fairly serious procedure.
And although we usually don’t think about sterilization as an impulse purchase, it might just become one when a free deal is about to be snipped.

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I have an example that is a lot less extreme: When the latest Lady Gaga album came out for 99 cents for a limited time, I jumped at the opportunity. Even though I’m not the biggest Lady Gaga fan, and rarely if ever buy albums, I felt like this was too good a deal to pass up. I wouldn’t have bought the album if it was full price.
Don’t give Groupon or Living Social any ideas!
Hi Dan
Excelent study, continue to show your work for students like me, thanks.
Carlos Fonseca
‘Snipped’ lol
One could test this (er, ethics aside).
Announce you’ll end the freebie, then change your mind on that date.
Sum up and see if there were extra sterilizations or if it was just time-shifted.
Paging Steve Levitt…
Dan,
I’m amazed at where you find this stuff. Where do you get it?
Daniel
He gets it from Chuck Norris’ blog.
Chuck Norris does not need a blog. Chuck Norris uses just his mind to make Dan find this stuff.
Maybe they should do a test study and offer free kicks in the groin to men everywhere, and then threaten to drive up the price, and see just how much that drives up demand.
If it works with sterilization, it should work with that too!
Happy groin kicking!
disturbing and funny example. never would’ve expected free to have such pull for such a serious procedure like snipping.
I would expect the news about the change in fees for sterilisation to have started debate on the issue. Hence, there may be a group of people in that five-fold increase who neither brought forward their date of ‘snip’ nor were influenced by the ‘free vs. pay’ issue, but were simply influenced by the increased debate to realise this was a lifestyle choice that was right for them.
What a find! I also wonder if there is an increase in sterilization after the fee took effect. For smaller things like after school care, adoption increases. For something as serious as this… I wonder