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Article
Marriage and the value of waiting
Journal of Population Economics (2003)
  • Frank Strobel, University of Birmingham
Abstract

Using a simple model where singles try to maximize their "pizazz", we examine the value of the option to give up single life in favor of marriage when singles' pizazz levels follow correlated geometric Brownian motions. We derive the critical level of relative pizazz levels that triggers the move to marriage and find that for relatively small (large) potential economies of scale in marriage, a single will generally be willing to get married if his/her prospective partner's pizazz is strictly higher (lower) than his/her own.

Keywords
  • marriage; option
Disciplines
Publication Date
2003
Citation Information
Frank Strobel. "Marriage and the value of waiting" Journal of Population Economics Vol. 16 Iss. 3 (2003)
Available at: http://works.bepress.com/frank_strobel/17/