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The pre-marital investment game

  • Peters, Michael

Two sides of a finite marriage market engage in costly investment and are then matched assortatively. The purpose of the investment is solely to improve the quality of the match that trader can attain in the second stage. The paper studies the limits of equilibrium of these finite matching games as the number of traders gets large. It is shown that mixed Nash equilibria in the finite games converge to degenerate pure strategy equilibria in the limit in which both sides of the market invest too much.

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File URL: http://www.sciencedirect.com/science/article/B6WJ3-4N6G05N-1/2/9d238f5642e1e7adeb130685b08e9ef2
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Article provided by Elsevier in its journal Journal of Economic Theory.

Volume (Year): 137 (2007)
Issue (Month): 1 (November)
Pages: 186-213

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Handle: RePEc:eee:jetheo:v:137:y:2007:i:1:p:186-213
Contact details of provider: Web page: http://www.elsevier.com/locate/inca/622869

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  1. Michael Peters & Aloysius Siow, 2002. "Competing Premarital Investments," Journal of Political Economy, University of Chicago Press, vol. 110(3), pages 592-608, June.
  2. Ed Hopkins, 2006. "Job Market Signalling of Relative Position, or Becker Married to Spence," Levine's Bibliography 321307000000000553, UCLA Department of Economics.
  3. Nosaka, Hiromi, 2007. "Specialization and competition in marriage models," Journal of Economic Behavior & Organization, Elsevier, vol. 63(1), pages 104-119, May.
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