Matching with contracts: an efficient marriage market?

Zeng CQ

This paper studies a marriage market with two-sided information asymmetry in whichthe gains from marriage are stochastic. Contracts specify divisions of ex-post realizedmarital surplus. I first study a game in which one side of the matching market offerscontracts. I show that when expected marital surplus is strictly monotonic in agents

Keywords:

matching

,

stochastic marital surplus

,

marriage market

,

endogenous sharing rule

,

two-sided information asymmetry