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.:
- repec:ebl:ecbull:v:10:y:2005:i:3:p:1-8 is not listed on IDEAS
- Robert Gibbons, 1988.
"Learning in Equilibrium Models of Arbitration,"
485, Massachusetts Institute of Technology (MIT), Department of Economics.
- 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.
- Jeffrey M Wooldridge, 2010.
"Econometric Analysis of Cross Section and Panel Data,"
MIT Press Books,
The MIT Press,
edition 2, volume 1, number 0262232588, December.
- Jeffrey M. Wooldridge, 2001. "Econometric Analysis of Cross Section and Panel Data," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262232197, December.
- Anderson, K.S., 2001.
"Why Dowry Payments Declined With Modernisation in Europe but are Rising in India,"
2001-7, Tilburg University, Center for Economic Research.
- 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.
- 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, 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).
- 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.
- Amitrajeet Batabyal, 2004. "Meetings and exposure before an arranged marriage: a probabilistic analysis," Applied Economics Letters, Taylor & Francis Journals, vol. 11(8), pages 473-476.
- 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.
- Batabyal, Amitrajeet A., 2001. "On the likelihood of finding the right partner in an arranged marriage," Journal of Behavioral and Experimental Economics (formerly 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.
- Drew Fudenberg & Jean Tirole, 1991. "Game Theory," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262061414, December.
- 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 you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.