A search model of marriage and divorce

This paper analyses long term partnership formation in a marriage market in which individuals continue to search for partners while matched. Individuals prefer relationships which offer more instantaneous utility but they also prefer more stable relationships. A relationship is stable for one partner if there is less chance that the other will leave. An individual is more inclined to leave a relationship which offers less instantaneous utility and less stability. Since both partners are making these evaluations, the stability of the relationship for one companion depends on the stability of the relationship for the other and as such, separations rates are endogenous. It is shown that these feedback effects in search strategies generate a new type of multiple equilibria which is either stable or unstable depending on individuals' beliefs. (C) 2002 Elsevier Science (USA). All rights reserved.