Terms of Endearment: An Equilibrium Model of Sex and Matching

53 Pages Posted: 3 Nov 2012

See all articles by Peter Arcidiacono

Peter Arcidiacono

Duke University - Department of Economics; National Bureau of Economic Research (NBER)

Andrew Beauchamp

Boston College

Marjorie B. McElroy

Duke University

Multiple version iconThere are 2 versions of this paper

Date Written: May 5, 2011

Abstract

We develop a directed search model of relationship formation which can disentangle male and female preferences for types of partners and for di fferent relationship terms using only a cross-section of observed matches. Individuals direct their search to a particular type of match on the basis of (i) the terms of the relationship, (ii) the type of partner, and (iii) the endogenously determined probability of matching. If men outnumber women, they tend to trade a low probability of a preferred match for a high probability of a less-preferred match; the analogous statement holds for women. Using data from National Longitudinal Study of Adolescent Health we estimate the equilibrium matching model with high school relationships. Variation in gender ratios is used to uncover male and female preferences. Estimates from the structural model match subjective data on whether sex would occur in one's ideal relationship. The equilibrium result shows that some women would ideally not have sex, but do so out of matching concerns; the reverse is true for men.

Suggested Citation

Arcidiacono, Peter and Beauchamp, Andrew and McElroy, Marjorie B., Terms of Endearment: An Equilibrium Model of Sex and Matching (May 5, 2011). Economic Research Initiatives at Duke (ERID) Working Paper No. 138, Available at SSRN: https://ssrn.com/abstract=2170441

Peter Arcidiacono

Duke University - Department of Economics ( email )

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National Bureau of Economic Research (NBER) ( email )

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Andrew Beauchamp

Boston College ( email )

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United States

Marjorie B. McElroy (Contact Author)

Duke University ( email )

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Durham, NC 27708-0204
United States

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