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Exit and Voice in a Marriage Market

Author

Listed:
  • Akiko Maruyama

    (National Graduate Institute for Policy Studies (GRIPS))

  • Takashi Shimizu

    (Faculty of Economics, Kansai University)

  • Kazuhiro Yamamoto

    (Graduate School of Economics, Osaka University)

Abstract

In this paper, we present a model in which agents choose voice, exit, or stay options when their marital condition becomes bad. The "voice" option can be interpreted as a spouse's effort or "investment" in the household to resolve his/her dissatisfaction and improve the marital condition. If a spouse hopes to divorce, he/she chooses "exit" option. If a spouse does not hopes to express his/her opinion and to divorce, he/she chooses "stay" option. We focus on the role of "exit" and "voice" in a marriage and investigate the effects of divorce law which is based on fault or no-fault on divorce rates. Our paper shows that divorce rates tend to be too higher under unilateral divorce law in the non-transferable utility case. On the other hand, mutual-consent divorce law generates multiple equilibria and then divorce rates are inefficient even in the transferable utility case. In this multiple equilibria case, divorce rates are determined by social factors as culture, norm, and religion, etc.

Suggested Citation

  • Akiko Maruyama & Takashi Shimizu & Kazuhiro Yamamoto, 2009. "Exit and Voice in a Marriage Market," Discussion Papers in Economics and Business 09-04, Osaka University, Graduate School of Economics.
    • Handle: RePEc:osk:wpaper:0904
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Exit; Voice; Divorce law;
    All these keywords.

    JEL classification:

    • D1 - Microeconomics - - Household Behavior
    • K0 - Law and Economics - - General
    • R2 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis

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