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Marriage and Divorce: Informational Constraints and Private Contracting

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  • Peters, H Elizabeth

Abstract

This paper presents an empirical test of two contrasting models of contracting in marital relationships. The major distinction between the two models concerns the role of information. The first model assumes that ex post information about the value of opportunities outside the relationship is symmetric. The second model assumes that information is asymmetric. Each assumption leads to different implications about the effects of rules allowing unilateral versus mutual divorce decisions on the probability of initiating and terminating the marriage and on the distribution of marital resources at divorce. Copyright 1986 by American Economic Association.

Suggested Citation

  • Peters, H Elizabeth, 1986. "Marriage and Divorce: Informational Constraints and Private Contracting," American Economic Review, American Economic Association, vol. 76(3), pages 437-454, June.
  • Handle: RePEc:aea:aecrev:v:76:y:1986:i:3:p:437-54
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