ECN 340 Lecture Notes - Lecture 4: The Marriage Market, Ceteris Paribus, Vacuum Cleaner

• School: Ryerson University
• Department: Economics
• Course: ECN 340
• Professor: Thomas Barbeiro

Document Summary

The marriage contract: marriage, or the cohabitation, is a legally enforceable contract between two people, of any sex, each of the party agrees to abide by certain principles consensually established prior to the marriage. It is an open-ended contract; not eventual possibilities are spelled out: marriage is much like a constitution, or by-laws that govern behaviour in a firm, purpose of dating is to work out provisions of contract. Suing him or her for not cutting the grass: divorce is a dissolution of the contract, just like a break-up of a business. Investment in a marriage makes it more difficult to break-up each of the individuals has his or his interests, but investments in the marriage makes it harder to go away. ex. Kids, house, pets: dissolution may be the result of not investing enough resources (time, energy, and emotional hassle, living together with the capacity to simply walk out may force the other party to be more considerate.