Romantic Relationship Towards Marriage: An Option Approach
نویسندگان
چکیده
We view the decision of whether to enter a romantic relationship as an option. The decision depends on the value of the option and potential gain from searching for a new partner. We base our model on Gary Becker’s marriage model, and study the impact of different factors on the probability of a romantic relationship as well as a marriage. We also extend our model to explain several different scenarios, including urgent marriage, breaking up, and different dating cultures. This paper introduces a method from financial engineering to the study of a social and economic issue. (JEL: C6, D1, G0) “The exchange of thy love's faithful vow for mine.” Romeo and Juliet, Shakespeare 1 Lin Zhao is a second-year MAE student (Class of 2018) at Department of Economics, Duke University. Email: [email protected]. Romantic Relationship Towards Marriage: An Option Approach 1
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