Old Money, the Nouveaux Riches and Brunhilde's Marriage Strategy

30 Pages Posted: 19 Jul 2014

See all articles by Anne-Kathrin Bronsert

Anne-Kathrin Bronsert

Max Planck Institute for Tax Law and Public Finance

Amihai Glazer

University of California, Irvine - Department of Economics

Kai A. Konrad

Max Planck Institute for Tax Law and Public Finance; Centre for Economic Policy Research (CEPR); CESifo (Center for Economic Studies and Ifo Institute for Economic Research); IZA Institute of Labor Economics

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Abstract

A woman assessing the wealth of a potential husband may observe some, but not all, of his wealth. She may screen, leading to status consumption and wasteful gift giving. The screening activity is costly not only for the potential husband, but also for the woman, as it reduces the wealth of the man she may marry. A sound observable financial background ('old money') benefits the candidate but also the woman, and reduces wasteful status consumption spending. Also, aging and attractiveness of the woman affect the equilibrium conspicuous spending pattern.

Keywords: marriage, screening, search, conspicuous consumption, status

JEL Classification: J12, D82

Suggested Citation

Bronsert, Anne-Kathrin and Glazer, Amihai and Konrad, Kai A., Old Money, the Nouveaux Riches and Brunhilde's Marriage Strategy. IZA Discussion Paper No. 8307. Available at SSRN: https://ssrn.com/abstract=2468463

Anne-Kathrin Bronsert (Contact Author)

Max Planck Institute for Tax Law and Public Finance ( email )

Amihai Glazer

University of California, Irvine - Department of Economics ( email )

3151 Social Science Plaza
Irvine, CA 92697-5100
United States
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949-824-2182 (Fax)

Kai A. Konrad

Max Planck Institute for Tax Law and Public Finance ( email )

Marstallplatz 1
Munich, 80539
Germany

HOME PAGE: http://www.tax.mpg.de/en/pub/home.cfm

Centre for Economic Policy Research (CEPR)

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CESifo (Center for Economic Studies and Ifo Institute for Economic Research)

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Munich, 81679
Germany

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, 53072
Germany

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