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Non-cooperative versus cooperative family

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  • Atsue Mizushima
  • Koichi Futagami

Abstract

This paper focuses on strategic interaction within a family and examines individual decision making. We set up a two-stage game model. In the first stage of the game, a man and a woman who have not yet met simultaneously determine their education levels non-cooperatively. In the second stage, they marry and determine their leisure time. In the second stage, we compare two decision modes, non-cooperative and cooperative, in order to characterize the nature of cooperation within the families. In addition, we extend the basic model on the basis of a Stackelberg game. In this setting, we consider the case in which a man acts as a leader and a woman acts as a follower. We show that the leader invests in higher education and chooses more leisure time than the follower. This coincides with the empirical findings. Copyright Springer-Verlag Wien 2015

Suggested Citation

  • Atsue Mizushima & Koichi Futagami, 2015. "Non-cooperative versus cooperative family," Journal of Economics, Springer, vol. 114(1), pages 43-62, January.
  • Handle: RePEc:kap:jeczfn:v:114:y:2015:i:1:p:43-62
    DOI: 10.1007/s00712-014-0391-7
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    References listed on IDEAS

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    Cited by:

    1. Donni, Olivier & Molina, José Alberto, 2018. "Household Collective Models: Three Decades of Theoretical Contributions and Empirical Evidence," IZA Discussion Papers 11915, Institute of Labor Economics (IZA).

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    More about this item

    Keywords

    Household public goods; Cooperative game; Non-cooperative game; Stackelberg game; Time allocation; Strategic complementarity; D13; J24;
    All these keywords.

    JEL classification:

    • D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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