Artikel

Divorce costs and marital dissolution in a one-to-one matching framework with nontransferable utilities

In this paper, we use a two-period one-to-one matching model with incomplete information to examine the effect of changes in divorce costs on marital dissolution. Each individual who has a nontransferable expected utility about the quality of each potential marriage decides whether to marry or to remain single at the beginning of the first period. Individuals married in the first period learn the qualities of their marriages at the beginning of the second period and then decide whether to stay married or to unilaterally divorce. We show that, for any society, there exist matching environments where the probability of the marital dissolution does not reduce divorce costs under gender-optimal matching rules. In such environments, an allocation effect of divorce costs with an ambiguous sign outweighs an incentive effect that is always negative. We also show that these results may also arise under stable matching rules that are not gender optimal.

Language
Englisch

Bibliographic citation
Journal: Games ; ISSN: 2073-4336 ; Volume: 4 ; Year: 2013 ; Issue: 1 ; Pages: 106-124 ; Basel: MDPI

Classification
Wirtschaft
Bargaining Theory; Matching Theory
Marriage; Marital Dissolution; Family Structure; Domestic Abuse
Subject
one-to-one matching
stability
marriage dissolution
divorce
incomplete information

Event
Geistige Schöpfung
(who)
Saglam, Ismail
Event
Veröffentlichung
(who)
MDPI
(where)
Basel
(when)
2013

DOI
doi:10.3390/g4010106
Handle
Last update
10.03.2025, 11:42 AM CET

Data provider

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Object type

  • Artikel

Associated

  • Saglam, Ismail
  • MDPI

Time of origin

  • 2013

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