TEL  Vol.3 No.1 , February 2013
Which Spouse First Decides in the Household? The Dynamics of Bargaining
ABSTRACT

This paper examines the effects of which spouse first decides in the intrahousehold decision on the time that each spouse devotes to the provision of a family good. Specifically, we adopt a dynamic approach by developing a supergame, with the status quo being sequential, to study the influence of the discount factor, which measures the importance of the future, on the set of sustainable agreements in intrahousehold bargaining. We first show that cooperation is easily sustained. We then observe a positive relationship between the discount factor and the proportion of time that the follower devotes to housework, when focusing on sustainable agreements, with this finding being maintained even if the follower has higher wages than the spouse leader.


Cite this paper
J. Andaluz Funcia, M. Marcén and J. Alberto Molina Chueca, "Which Spouse First Decides in the Household? The Dynamics of Bargaining," Theoretical Economics Letters, Vol. 3 No. 1, 2013, pp. 69-77. doi: 10.4236/tel.2013.31011.
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