At the moment, many of my friends are getting married. At the same time some of my other friends who are not married are telling me they don’t understand why people get married.
While I am not married, I think the idea of marriage is grand. I think it is a great way of dealing with a social issue that involves both search and relationship specific investment!
Now, you may think I’m being too romantic here by bringing up terms like “relationship specific investment” – but let us not forget the awesome power of economics for dealing with these ideas. The question is, given marriage as an institution what specific type of co-ordination failure did marriage turn up to solve?