A Search Theory of Dowry

Abstract

Dowries have traditionally been viewed in economics as arising from a supply imbalance of the marriage market which disadvantages women. In this thesis, a different cause is proposed. Dowries are modelled as arising from an intertemporal bargaining process in a frictional search market, with differential aging in favour of men. This extends the insights of the standard model and is able to explain several puzzling stylised facts. Most notably, dowries may occur when there are more men than women in the market, and dowry and brideprice can coexist in the same market. The model is extended to include heterogeneous males of different quality.