TY - UNPB
T1 - Risk, cohabitation and marriage
AU - Rao Sahib, P.
AU - Gu, X.
N1 - Relation: http://som.rug.nl/
date_submitted:2001
Rights: Graduate School/Research Institute, Systems, Organisations and Management (SOM)
PY - 2000
Y1 - 2000
N2 - This paper introduces imperfect information,learning,and risk aversion in a two
sided matching model.The modelprovides a theoreticalframework for the com-
monly occurring phenomenon of cohabitation followed by marriage,and is con-
sistent with empirical findings on these institutions.The paper has three major
results.First,individuals set higher standards for marriage than for cohabitation.
When the true worth of a cohabiting partner is revealed,some cohabiting unions
are converted into marriage while others are not.Second,individuals cohabit
within classes.Third,the premium that compensates individuals for the higher
risk involved in marriage over a cohabiting partnership is derived.This premium
can be decomposed into two parts.The first part is a function of the individual ’s
level of risk aversion,while the second part is a function of the di difference in risk
between marriage and cohabitation.
AB - This paper introduces imperfect information,learning,and risk aversion in a two
sided matching model.The modelprovides a theoreticalframework for the com-
monly occurring phenomenon of cohabitation followed by marriage,and is con-
sistent with empirical findings on these institutions.The paper has three major
results.First,individuals set higher standards for marriage than for cohabitation.
When the true worth of a cohabiting partner is revealed,some cohabiting unions
are converted into marriage while others are not.Second,individuals cohabit
within classes.Third,the premium that compensates individuals for the higher
risk involved in marriage over a cohabiting partnership is derived.This premium
can be decomposed into two parts.The first part is a function of the individual ’s
level of risk aversion,while the second part is a function of the di difference in risk
between marriage and cohabitation.
KW - Risicoanalyse
KW - Huwelijk
M3 - Working paper
BT - Risk, cohabitation and marriage
PB - s.n.
ER -