IZA DP No. 3757: Dynamics of Intrahousehold Bargaining
published as 'Which spouse first decides in the household? The dynamics of bargaining' in: Theoretical Economics Letters, 2013, 3, 69-77
This paper studies the dynamics of bargaining in an intrahousehold context. To explore long-term partner relationships, we analyse bilateral bargaining by considering that spouses take decisions sequentially. We conclude that a greater valuation of the present, rather than the future, for the spouse who takes the second decision, increases the set of possible sustainable agreements, as well as the proportion of time that this agent devotes to a family good.