Scandinavian Working Papers in Economics

Working Paper Series,
Uppsala University, Department of Economics

No 1997:1: Time Consistent Matrimony with Endogenous Trust

Martin Dufwenberg ()
Additional contact information
Martin Dufwenberg: Stockholm University, Postal: Department of Economics, SE-106 91 Stockholm, Sweden

Abstract: A 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.

Keywords: Marriage; time consistency; emotions; guilt; psychological game theory

JEL-codes: C72; J12

19 pages, December 30, 1996

Full text files

1997wp1.pdf PDF-file 

Download statistics

Questions (including download problems) about the papers in this series should be directed to Ulrika Öjdeby ()
Report other problems with accessing this service to Sune Karlsson ().

RePEc:hhs:uunewp:1997_001This page generated on 2024-09-13 22:17:36.