Ch08_-_Marriage - Chapter8 TheEconomicsofMarriage...

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Chapter  8 The Economics of Marriage
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2 The Economics of Marriage How the marriage market work Impact of legalizing polygyny on men and  women
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3 Assumptions Some people want to marry other people. Although marriage partners, potential and  actual, may put considerable value on each  other’s welfare, there is still room for some  conflict of interest between them. Thus, there is also room for some bargaining over the  terms of marriage.
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4 Assumptions The marriage partners are the only ones whose  consent is required in order for the marriage to  take places. They can choose whether and with whom to marry. They have property rights over themselves. An assumption that is appropriate for most countries  nowadays.
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5 The Model: A Market for Marriage When two people get married, they do so with  some general understanding of the terms they  are committing themselves to  what duties each is expected to perform how free a hand each will have with the common It serves the same function as an explicit price in  other markets.
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6 Price… ? For our model, then, we will think of the  marriage market as an ordinary market with a  price. The price is defined relative to an arbitrary  "standard" marriage contract.
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7 Price… ? Any other contract can be viewed as a standard  contract plus or minus a certain number of  dollars paid by the husband to the wife. Plus represents a contract more favorable to the wife  than the standard, while minus represents one less  favorable. 
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8 Price… ? Supply and demand behave just as they do on  any other market.  The quantity supplied of wives (the number of  women willing to marry) will be higher, and the  quantity demanded lower, the higher the price.
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9 The Marriage Market In the figure, S w  is the supply curve for wives, D w  the  demand curve for wives, and P w  is a price (positive or  negative) paid by husbands to wives - the price of a wife.  D w S w P w CS PS Price Per Wife Wives Q w
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10 A Plague…. Suppose that a plague kills off many young  women of marriageable age. What will happen after the plague?
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11 A Plague…. We expect…. . Young men difficult it to get married. Young women find it easy. 
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A Plague…. Men will find that they are implicitly bidding  (competing) against each other for wives. The terms may include the willingness of the men  to accept marriage terms more pleasing to the  women. Price for a wife goes up.
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This note was uploaded on 10/15/2009 for the course ECONOMICS UGC251QD/ taught by Professor Fredku during the Spring '09 term at CUHK.

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Ch08_-_Marriage - Chapter8 TheEconomicsofMarriage...

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