Mediator learning and dowry determination in an arranged marriage setting
AbstractRecently, Batabyal (2005) has analyzed a game model of dowry determination in which a mediator plays a key role. Batabyal's analysis shows that the equilibrium dowry offers from the bride and the groom optimally trade off the desire to make an assertive offer with the likelihood that this offer will be selected by the mediator. We extend the Batabyal (2005) analysis by studying the impact that learning—about the circumstances of a prospective marriage—by the mediator has on the tripartite interaction between the bride, the groom, and the mediator. Specifically, we first determine the optimal dowry offers from the bride and the groom in a separating perfect Bayesian equilibrium. Next, we show that the mediator perfectly infers the private information of the two parties from their dowry offers and that he then uses this information in part to select his preferred dowry offer.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by AccessEcon in its journal Economics Bulletin.
Volume (Year): 15 (2007)
Issue (Month): 12 ()
Contact details of provider:
Find related papers by JEL classification:
- O1 - Economic Development, Technological Change, and Growth - - Economic Development
- D8 - Microeconomics - - Information, Knowledge, and Uncertainty
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Drew Fudenberg & Jean Tirole, 1991. "Game Theory," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262061414, June.
- Amitrajeet Batabyal, 2004. "Meetings and exposure before an arranged marriage: a probabilistic analysis," Applied Economics Letters, Taylor and Francis Journals, vol. 11(8), pages 473-476.
- Jeffrey M Wooldridge, 2010.
"Econometric Analysis of Cross Section and Panel Data,"
MIT Press Books,
The MIT Press,
edition 2, volume 1, number 0262232588, June.
- Jeffrey M. Wooldridge, 2001. "Econometric Analysis of Cross Section and Panel Data," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262232197, June.
- Siwan Anderson, 2003.
"Why Dowry Payments Declined with Modernization in Europe but Are Rising in India,"
Journal of Political Economy,
University of Chicago Press, vol. 111(2), pages 269-310, April.
- Anderson, K.S., 2001. "Why Dowry Payments Declined With Modernisation in Europe but are Rising in India," Discussion Paper 2001-7, Tilburg University, Center for Economic Research.
- Batabyal, Amitrajeet A., 2001. "On the likelihood of finding the right partner in an arranged marriage," The Journal of Socio-Economics, Elsevier, vol. 30(3), pages 273-280, May.
- Amitrajeet Batabyal, 2005. "A game model of dowry determination in an arranged marriage context," Economics Bulletin, AccessEcon, vol. 10(3), pages 1-8.
- Bloch, Francis & Rao, Vijayendra, 1999.
"Terror as a Bargaining Instrument : A Case-Study of Dowry Violence in Rural India,"
Discussion Papers (IRES - Institut de Recherches Economiques et Sociales)
1999020, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
- Francis Bloch & Vijayendra Rao, 2002. "Terror as a Bargaining Instrument: A Case Study of Dowry Violence in Rural India," American Economic Review, American Economic Association, vol. 92(4), pages 1029-1043, September.
- Bloch, Francis & Rao, Vijayendra, 2000. "Terror as a bargaining instrument : a case study of dowry violence in rural India," Policy Research Working Paper Series 2347, The World Bank.
- Robert Gibbons, 1989.
"Learning In Equilibrium Models of Arbitration,"
NBER Working Papers
2547, National Bureau of Economic Research, Inc.
- Vijayendra Rao, .
"The Rising Price of Husbands: A Hedonic Analysis of Dowry Increases in Rural India,"
University of Chicago - Population Research Center
91-6, Chicago - Population Research Center.
- Rao, Vijayendra, 1993. "The Rising Price of Husbands: A Hedonic Analysis of Dowry Increases in Rural India," Journal of Political Economy, University of Chicago Press, vol. 101(4), pages 666-77, August.
- repec:ebl:ecbull:v:10:y:2005:i:3:p:1-8 is not listed on IDEAS
- Dalmia, Sonia, 2004. "A hedonic analysis of marriage transactions in India: estimating determinants of dowries and demand for groom characteristics in marriage," Research in Economics, Elsevier, vol. 58(3), pages 235-255, September.
- Amitrajeet A Batabyal & Hamid Beladi, 2013. "Setting the dowry optimally to extract the full surplus: a contract theory perspective," Economics Bulletin, AccessEcon, vol. 33(3), pages 2034-2041.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (John P. Conley).
If references are entirely missing, you can add them using this form.