NDLI: Intrafamily bargaining and love

Content Provider	Springer Nature Link
Author	Si, Man
Copyright Year	2014
Abstract	Popular culture and common wisdom testify that the way partners in a relationship feel for one another very much depends on how they treat each other. This paper posits the hypothesis that altruism or love in a relationship is endogenous to the actions of the partners and studies how this influences allocations and efficiency in a bargaining model of household decision-making. The main results are that agents treat their partner in a kinder way than without endogenously evolving love, this leads to more equitable allocations in household decision making and greater intertemporal efficiency. There are two mechanisms at work: agents treat their partner nicely to avoid retribution by a less loving partner in the future; and they treat the partner nicely so that the kind reciprocal behavior raises their own love towards the partner, which lets them enjoy higher utility. As to love, two interpretations emerge: love is a commitment device by which couples can implement Pareto superior allocations; and love is an investment good in the sense that costly nice behavior towards the partner today may ensure higher levels of trust and efficiency in the future.
Starting Page	771
Ending Page	789
Page Count	19
File Format	PDF
ISSN	15695239
Journal	Review of Economics of the Household
Volume Number	13
Issue Number	4
e-ISSN	15737152
Language	English
Publisher	Springer US
Publisher Date	2014-02-21
Publisher Place	New York
Access Restriction	One Nation One Subscription (ONOS)
Subject Keyword	Family economics Household bargaining Altruism Love Bargaining power Commitment Microeconomics Labor Economics Population Economics Social Sciences
Content Type	Text
Resource Type	Article
Subject	Social Sciences Economics and Econometrics

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1	Ministry of Education (GoI), Department of Higher Education	Sanctioning Authority	https://www.education.gov.in/ict-initiatives
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4	Project PI / Joint PI	Principal Investigator and Joint Principal Investigators of the project	Dr. B. Sutradhar bsutra@ndl.gov.in Prof. Saswat Chakrabarti will be added soon
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