The Bargaining Family Revisited

Konrad, Kai A. und Lommerud, Kjell Erik (1996): The Bargaining Family Revisited. CEPR Discussion Papers, 1312

Abstract

We suggest a family bargaining model where human capital investment decisions are made non-cooperatively in a first stage, while day-to-day allocation of time is determined later through Nash bargaining, but with non-cooperative behaviour as the fall back. Several authors have claimed that non-cooperative behaviour is a more appropriate fall back in family bargaining than utilities as single. We argue that the empirical implications of the two approaches are quite parallel. A second finding is that over-investment in education may be even more of a problem in our mixed cooperative-non-cooperative model than in a fully non-cooperative one.

• Item Type: Paper
• Keywords: Education; Family Bargaining
• Faculties: Economics > Chairs > MPI for Tax Law and Public Finance
• Subjects: 300 Social sciences > 330 Economics
• JEL Classification: D13, J22, J24
• Language: English