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Dynamics of Intrahousehold Bargaining

  • Andaluz, Joaquín

    ()

    (University of Zaragoza)

  • Marcén, Miriam

    ()

    (University of Zaragoza)

  • Molina, José Alberto

    ()

    (University of Zaragoza)

This paper studies the dynamics of bargaining in an intrahousehold context. To explore long-term partner relationships, we analyse bilateral bargaining by considering that spouses take decisions sequentially. We conclude that a greater valuation of the present, rather than the future, for the spouse who takes the second decision, increases the set of possible sustainable agreements, as well as the proportion of time that this agent devotes to a family good.

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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 3757.

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Length: 16 pages
Date of creation: Oct 2008
Date of revision:
Publication status: published as 'Which spouse first decides in the household? The dynamics of bargaining' in: Theoretical Economics Letters, 2013, 3, 69-77
Handle: RePEc:iza:izadps:dp3757
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  1. Vagstad, S., 1999. "On Private Incentives to Acquire Household Production Skills," Norway; Department of Economics, University of Bergen 1499, Department of Economics, University of Bergen.
  2. Konrad, Kai A. & Lommerud, Kjell Erik, 1996. "The Bargaining Family Revisited," CEPR Discussion Papers 1312, C.E.P.R. Discussion Papers.
  3. Kooreman, P. & Kapteyn, A.J., 1989. "On the empirical implementation of some game theoretic models of household labor supply," Discussion Paper 1989-56, Tilburg University, Center for Economic Research.
  4. Lundberg, Shelly & Pollak, Robert A, 1993. "Separate Spheres Bargaining and the Marriage Market," Journal of Political Economy, University of Chicago Press, vol. 101(6), pages 988-1010, December.
  5. Shelly Lundberg & Robert A. Pollak, 2001. "Efficiency in Marriage," NBER Working Papers 8642, National Bureau of Economic Research, Inc.
  6. Browning, Martin, 2000. " The Saving Behaviour of a Two-Person Household," Scandinavian Journal of Economics, Wiley Blackwell, vol. 102(2), pages 235-51, June.
  7. McElroy, Marjorie B & Horney, Mary Jean, 1981. "Nash-Bargained Household Decisions: Toward a Generalization of the Theory of Demand," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 22(2), pages 333-49, June.
  8. George A. Akerlof & Rachel E. Kranton, 2000. "Economics and Identity," The Quarterly Journal of Economics, Oxford University Press, vol. 115(3), pages 715-753.
  9. James W. Friedman, 1971. "A Non-cooperative Equilibrium for Supergames," Review of Economic Studies, Oxford University Press, vol. 38(1), pages 1-12.
  10. Maria Paz Espinosa & Changyong Rhee, 1989. "Efficient Wage Bargaining as a Repeated Game," The Quarterly Journal of Economics, Oxford University Press, vol. 104(3), pages 565-588.
  11. Zhiqi Chen & Frances Woolley, 1999. "A Cournot-Nash Model of Family Decision Making," Carleton Economic Papers 99-13, Carleton University, Department of Economics, revised Oct 2001.
  12. Basu, Kaushik, 2001. "Gender and Say: A Model of Household Behavior with Endogenously-Determined Balance of Power," Working Papers 01-01, Cornell University, Center for Analytic Economics.
  13. Michael Bittman & Paula England & Nancy Folbre & George Matheson, 2001. "When Gender Trumps Money: Bargaining and Time in Household Work," JCPR Working Papers 221, Northwestern University/University of Chicago Joint Center for Poverty Research.
  14. (*), Kai A. Konrad & Wolfgang Buchholz & Kjell Erik Lommerud, 1997. "Stackelberg leadership and transfers in private provision of public goods," Review of Economic Design, Springer;Society for Economic Design, vol. 3(1), pages 29-43.
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