Does matching uncertainty reduce marital payoff? Evidence from China
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How does noise in the information cue to the potential spousal quality affect marriage outcomes? We show in a simple two-dimensional matching model, a noisier cue to one feature decreases positive sorting on this feature and does the opposite on other features. While increasing noise reduces overall expected utility, the effect is asymmetric between genders and among people with different features.
Li Han is associate professor of economics in the Division of Social Science at the Hong Kong University of Science and Technology. She received her Ph.D. in Economics at Harvard University in 2008. Her primary fields are development economics and political economy.