Gu, Xinhua; Sahib, Padma Rao - In: Journal of Population Economics 15 (2002) 2, pp. 261-282
This paper develops a two sided matching model of premarital cohabitation and marriage in which premarital cohabitation serves as a period of learning. We solve for the optimal policy to be followed by individuals by treating the model as a three stage dynamic programming problem. We find that...