ECN 340 Lecture Notes - Lecture 8: Cappuccino, Technological Change, The Marriage Market
27 Apr 2017
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Document Summary
In the marriage market there is a matching problem: who matches up with whom, and on what terms, will depend on what the competition is offering. If there are 20 single women and 19 single men. The men will have the power to be picky. Why: because one women will be left without a man, and will create competition among the women and will not collect 100$ like everyone else. The dramatic increase in the bargaining power of men due to scarcity doesn"t harm merely the women who don"t get to marry but also those who do. Their potential partners just have too many options to allow a. Fair bargain: nothing in economics is fair because of supply and demand, shortage of men can lead to competition among women to look better by plastic surgery etc. to. Catch a man : this could be reversed with not enough females, conclusion: competition in the marriage market matters in determining outcomes.
