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Time Consistent Matrimony with Endogenous Trust

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  • Dufwenberg, Martin

    (Stockholm University)

Abstract

A simple model of marriage and divorce predicts that no marriages occur. Yet, in real life, people marry all the time in seemingly similar situations. This discordance is explained using psychological game theory. An emotional guilt effect is explicitly modeled and multiple belief-dependent equilibria become possible: some marriages don’t happen, some are formed but end in divorce, some last a lifetime. For certain parameterizations a lifelong efficient marriage is guaranteed; one spouse’s approval to marry signals a trust so strong as to force the other spouse to hold beliefs which make divorce exceedingly emotionally unattractive. These results may have some bearing also on other partnerships than marriage.

Suggested Citation

  • Dufwenberg, Martin, 1996. "Time Consistent Matrimony with Endogenous Trust," Working Paper Series 1997:1, Uppsala University, Department of Economics.
    • Handle: RePEc:hhs:uunewp:1997_001
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    References listed on IDEAS

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    1. Dufwenberg, M. & Gneezy, U., 1996. "Efficiency, Reciprocity and Expectations in an Experimental Game," Other publications TiSEM 96e64bdc-6dc3-4d49-9d1c-b, Tilburg University, School of Economics and Management.
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    6. Weiss, Yoram & Willis, Robert J, 1993. "Transfers among Divorced Couples: Evidence and Interpretation," Journal of Labor Economics, University of Chicago Press, vol. 11(4), pages 629-679, October.
    7. Rabin, Matthew, 1993. "Incorporating Fairness into Game Theory and Economics," American Economic Review, American Economic Association, vol. 83(5), pages 1281-1302, December.
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    9. Stark,Oded, 1999. "Altruism and Beyond," Cambridge Books, Cambridge University Press, number 9780521663731.
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    Cited by:

    1. Anderlini, Luca & Terlizzese, Daniele, 2017. "Equilibrium trust," Games and Economic Behavior, Elsevier, vol. 102(C), pages 624-644.
    2. Arnout van de Rijt & Vincent Buskens, 2006. "Trust in Intimate Relationships," Rationality and Society, , vol. 18(2), pages 123-156, May.

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    More about this item

    Keywords

    Marriage; time consistency; emotions; guilt; psychological game theory;
    All these keywords.

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • J12 - Labor and Demographic Economics - - Demographic Economics - - - Marriage; Marital Dissolution; Family Structure

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