Game Theory in Marriage
1 Overview
Each year, over two million couples are married in the United States but nearly half of these
marriages will end in divorce1. Given the high rate of divorce, one might assume the use of pre-
marriage contracts (also referred to herein as prenuptial agreements) would be equally high.
However, only 5-10% of married couples typically sign pre-marriage contracts, while the rest forge
ahead into what Samuel Johnson called a “ triumph of hope over experience.”
This paper attempts to explain the paradox, understand individuals’ behaviors as they relate to
marriage, divorce and the use of pre-nuptial agreements. We have used the principles of game
theory to predict an equilibrium outcome relating to the use of prenuptial agreements and to
explain deviations from this outcome.
2 Background on Pre-marriage Agreements
A pre-marriage contract, also referred to as a prenuptial agreement or “ pre-nup,” is a legal contract
entered by both parties prior to marriage that defines expectations for behavior during the
marriage and sets guidelines for property division in the event of the dissolution of the marriage.
Legally speaking, a marriage is a private contract between two people who voluntarily agree to
enter a spousal relationship. 2 Couples entering into a marriage become united in many
dimensions, including social and financial. Financially, the concept of community property binds
the assets and debts of one spouse to those of the other’ s.
Claude Fischer the author of Sweet Land of Conformity erroneously makes the claim that, “Our culture consists that if you marry… you are signing an explicit or implicit contract to cooperate and conform.” We feel that as Americans, people tend to stray from this ideal; this is portrayed through divorce and infidelity. In today’s corrupt society, when you marry, you are expected to be loyal based on an, “explicit or implicit contract.” But as time goes by and people become less interested and involved with their partners, we see that this claim is not true. The twisted love triangle that occurred between Angelina Jolie, Jennifer Aniston, and Brad Pitt in 2005 demonstrates an example of infidelity which led to divorce. While Brad Pitt was married
The marriage contract is essentially a monopoly document. It represents a legally sanctioned collusive agreement between two parties to exclude competitors and restrain trade. It closes the market to competition, or at least it is supposed to. This collusion has benefits as well as costs. Because I have exclusive rights to her affections and property rights to a stream of highly valued domestic services, I place a higher value on my spouse, making me willing to share with her a greater percentage of my wealth. My spouse receives a comparable set of benefits from this collusive arrangement.
The Supreme Court of Canada defines marriage as between two people with different gender. As time passes, the society changes as well as the law. “The law is a vital force in society: it is a skeleton that structures our economic, social and political lives” (Boyd, 2011).
Marriage is a commitment that seems to be getting harder to keep. The social standards placed on an individual by society and influenced by the media inevitably lead some to consider divorce as a “quick-fix” option. “Have it your way” has become a motto in the United States. It has become a country without any consideration of the psychological effects of marriage and divorce. The overwhelmingly high divorce rate is caused by a lack of moral beliefs and marital expectations.
In this era we live in, we are brought up to think divorce is bound to happen. According to The American Psychological Association, “about 40 to 50 percent of married couples in the United States divorce” and “the divorce rate for subsequent marriages is even higher.” Many adults decide that it is less messy to just live with one another rather than actually get married. This is beginning to drive the rates of marriage down. Many have speculated that relationships will continue to evolve, especially if the human lifespan continues expand. Fiction writers such as Drew Magary and real world scientists such as Aubrey de Grey have explored this very topic of relationships.
In her text, she states that cohabitation has become very famous in the United States. Jay also reports that young adults in their twenties see cohabitation as a preventive way to avoid divorce. The perception that she contradicts by pointing out that people who cohabit before marriage are more at risk of divorce because once they are married they become unsatisfied of their marriage, she calls this phenomenon the cohabitation effect. The author also punctuates that the problem of the cohabitation effect is that lovers do not really discuss their personal perception of cohabitation or what it will mean for them. Instead, they slide into cohabitation, get married, and divorce after realizing that they made a mistake. She proves her point by presenting a research which shows that women and men have a different interpretation of cohabitating prior marriage. Furthermore, the author emphasizes her argument by saying that the problem is not starting a cohabiting relationship but leaving that relationship which can be the real issue after all the time and money invested. Finally, Jay indicates that American’s mindset about their romantic relationship is changing and can be illustrated by the fact that more Americans started to see cohabitation as a commitment before
Plunkett, Robert L. “Divorce Laws Should Be Reformed.” Marriage and Divorce. Eds. Tamara L. Roleff and Mary E. Williams. Current Controversies Series. Greenhaven Press, 1997. From Robert L. Plunkett, "Vow for Now," National Review, May 29, 1995; (c) 1995 by National Review, New York, NY. Rpt. by permission. Opposing Viewpoints Resource Center. Thompson Gale. 15 June 2005
Every year approximately 2.4 million marriages occur.Out of those,2.1 millionwill file for divorce in the United States. These marriage and divorce rates have significantly increased since the years past(Coltrane and Adams, 364).According to Schoen, in the 1950’s, 15 out of 1,000 marriages ended in divorce.In the 1970’s, the rates of divorcedoubled,increasing to 40 per 1,000 marriages. Currently, the rate of marriages resulting in divorce remains the same. Most marriages are ending within seven years ofthemarriage for multiple different reasons. Sociologists haveestablisheddivorce as a social problem from the rise in divorcerates due to the early year of marriages (2006).
Fifty years ago the traditional family was defined as a father and a mother, committed in a marriage, and with this marriage there was the possibility of children. However, over the years, this definition of the “traditional family” has changed. Today, there are more households that are held together either by a single parent, stepparents, or blended families. This can be the result of many possibilities but one of the reasons as to why this change has occurred is the result of an increase in divorce in the United States. The divorce rate is on the rise and currently approximately half of all marriages are ending in divorce (Cui, Fincham, and Durtschi 411). Currently, there occurs a rate of two divorces a minute in the United States court system (Gentleman 8). Not only has the divorced rate increased in the past years, but also the divorce law has changed. In recent years, these laws have made acquiring a divorce easier and a less stringent process for those that pursue it. Not only have these lenient laws contributed to the divorce rate, but they also affect both the families involved, especially the children, and the cultural values that have been established in the United States. If the divorce laws are made stricter it will positively affect the current divorce rate, the family involved, and the culture values.
Some’s definition of Marriage is when two souls coming into one soul –still distinct but forming one entity. Being raised in the church, marriage is when two people come together, declaring their wedding vows to each other and to God. Marriage is
As a realistic part of the rights to liberty and the pursuit of happiness, freedom in one's domestic relationships is very important. The freedom to put together one's domestic relationships in ways that best fit one's needs, desires, and life is critical in one's pursuit of happiness. The importance of this freedom to arrange one's domestic relationships freely becomes understandable in versions of the "Defense of Marriage Act" (DOMA), which is proposed, and sometimes passed, on the national and state levels. DOMA legislation, in its different forms, limits the legal definition of marriage to the “legal union of a man and woman.” (Sullivan, 1976, DOMA Act, pg. 2)
Marriage is a “socially recognized and approved union between individuals, who commit to one another with the expectations of a stable and lasting intimate relationship. It begins with a ceremony known as a wedding which formally unites marriage partners. A marital relationship usually involves some kind of contract, either written or specified by tradition, which defines the partners’ rights and obligations to each other, to any children they may have, and to their relatives. In most contemporary industrialized societies, marriage is certified by the government,” (Skolnick, 2005). Marriage is also an important institution because of the impact it has on society. Marriage is the main way that reproduction of human life occurs. In some societies it is tradition for family heirlooms or things of value be passed on through marriage. Marriage also serves as a healthy way to have intimate relationships with an individual. In most places a marriage exists between two people of the opposite sex. However, the legal definition of marriage is currently being challenged by many. According to Skolnick’s article a marriage can be defined by responsibilities that a couple would share, some examples are: living together, having sexual relations, sharing money and financial responsibilities, and having a child together. The issue is that homosexual couples can do these things like heterosexual couples.
The divorce statistics and couples living together paint an interesting picture. More than half the couples that decided to marry lived together before hand.
marriage is one of the most important institutions of the society. Each person in the
Marriage, the special time when two people promise each other to spend the rest of their life together whether it is “in sickness or in health.” However, even after vowing in front of family and friends to never separate unless parted by death, people still it find easier to break the special bond between the two rather than to find solutions to mend the broken pieces. With that broken bond comes divorce, the dissolution of a marriage, the complete opposite of what was promise on the special day. In today 's society, especially in the United State, divorce is so socially accepted that “40-50% of all first marriages, and 60% of second marriages, will end in divorce.” (Doherty). This is also why so many people rush into