Time Consistent Matrimony with Endogenous Trust
AbstractA 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.
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 InfoPaper provided by Uppsala University, Department of Economics in its series Working Paper Series with number 1997:1.
Length: 19 pages
Date of creation: 30 Dec 1996
Date of revision:
Contact details of provider:
Postal: Department of Economics, Uppsala University, P. O. Box 513, SE-751 20 Uppsala, Sweden
Phone: + 46 18 471 25 00
Fax: + 46 18 471 14 78
Web page: http://www.nek.uu.se/
More information through EDIRC
Marriage; time consistency; emotions; guilt; psychological game theory;
Find related papers by 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
This paper has been announced in the following NEP Reports:
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.:
- Rabin, Matthew, 1993.
"Incorporating Fairness into Game Theory and Economics,"
American Economic Review,
American Economic Association, vol. 83(5), pages 1281-1302, December.
- M. Rabin, 2001. "Incorporating Fairness into Game Theory and Economics," Levine's Working Paper Archive 511, David K. Levine.
- Matthew Rabin., 1992. "Incorporating Fairness into Game Theory and Economics," Economics Working Papers 92-199, University of California at Berkeley.
- Steven Tadelis & Oliver E.Williamson, 2012.
"Transaction Cost Economics
[The Handbook of Organizational Economics]," Introductory Chapters, Princeton University Press.
- Berg Joyce & Dickhaut John & McCabe Kevin, 1995. "Trust, Reciprocity, and Social History," Games and Economic Behavior, Elsevier, vol. 10(1), pages 122-142, July.
- Geanakoplos, John & Pearce, David & Stacchetti, Ennio, 1989. "Psychological games and sequential rationality," Games and Economic Behavior, Elsevier, vol. 1(1), pages 60-79, March.
- 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 629-79, October.
- Weiss, Y. & Willis, R.J., 1990. "Transfers Among Divorced Couples: Evidence And Interpretation," University of Chicago - Economics Research Center 90-4, Chicago - Economics Research Center.
- Yoram Weiss & Robert J. Willis, . "Transfers Among Divorced Couples: Evidence and Interpretation," University of Chicago - Population Research Center 90-4a, Chicago - Population Research Center.
- Polsby, Daniel D & Zelder, Martin, 1994. "Risk-Adjusted Valuation of Professional Degrees in Divorce," The Journal of Legal Studies, University of Chicago Press, vol. 23(1), pages 273-85, January.
- Dufwenberg, M. & Gneezy, U., 1996. "Efficiency, Reciprocity and Expectations in an Experimental Game," Discussion Paper 1996-79, Tilburg University, Center for Economic Research.
- Borenstein, Severin & Cournat, Paul N, 1989. "How to Carve a Medical Degree: Human Capital Assets in Divorce Settlements," American Economic Review, American Economic Association, vol. 79(5), pages 992-1009, December.
- Ruffle, Bradley J., 1999. "Gift giving with emotions," Journal of Economic Behavior & Organization, Elsevier, vol. 39(4), pages 399-420, July.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Katarina Grönvall).
If references are entirely missing, you can add them using this form.