ECN 340 Lecture Notes - Lecture 4: Sport Utility Vehicle, Junk Food, Inverse Relation
10 Nov 2015
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We chose the best spouse at the least possible cost. Marry person who has similar values and preferences. Greater the benefits of marriage, the greater search costs one is willing to incur. Ex: the catholic church is having an issue whether they should give communion to divorced people. The person would put in a lot of effort to try to find the perfect spouse. If marriage is in great esteem, more costs will be incurred. i. e. marriage may take place later in life. The easier it is to divorce, the less cost people incur in choosing the right spouse everything else held constant (ceteris paribus) Love: wanting the best for the other person. Couples in love will be less inclined to shirk their responsibilities (waste time) Person more willing to marry someone he/she loves-satisfaction increases. In a loveless marriage, more resources go to monitoring family members (calling)
