This paper presents a model of the choice between marriage and cohabitation for a couple who have decided to form a relationship. The model is used to analyse the implications of changing from a title based division of property on divorce to an equal sharing regime. There are two opposing...

This paper applies the theory of relational contracts to a model in which a couple decides whether to marry or cohabit, how many children to have and subsequently whether to stay together or separate. We make precise the idea that cooperation in a household can be supported by self interest....