Logo
Munich Personal RePEc Archive

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

Saglam, Ismail (2011): Divorce costs and marital dissolution in a one-to-one matching framework with nontransferable utilities.

Warning
There is a more recent version of this item available.
[thumbnail of MPRA_paper_33841.pdf]
Preview
PDF
MPRA_paper_33841.pdf

Download (298kB) | Preview

Abstract

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. Those who 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 is not decreasing in divorce costs under a gender-optimal matching rule. In such environments an allocation effect of divorce costs with ambiguous sign outweighs an incentive effect which is always negative.

Available Versions of this Item

Atom RSS 1.0 RSS 2.0

Contact us: mpra@ub.uni-muenchen.de

This repository has been built using EPrints software.

MPRA is a RePEc service hosted by Logo of the University Library LMU Munich.