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Discussion of: “Matchmakers’ Negotiation Role in Marriages: a Public Good Story” by Hui Wang

Discussion of: “Matchmakers’ Negotiation Role in Marriages: a Public Good Story” by Hui Wang. Luhang Wang Dec.1, 2006. Overview. Matchmakers’ role as negotiators in determining transfers from parents to kids at marriage (1) When do they play such a role?

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Discussion of: “Matchmakers’ Negotiation Role in Marriages: a Public Good Story” by Hui Wang

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  1. Discussion of:“Matchmakers’ Negotiation Role in Marriages: a Public Good Story”by Hui Wang Luhang Wang Dec.1, 2006

  2. Overview • Matchmakers’ role as negotiators in determining transfers from parents to kids at marriage (1) When do they play such a role? (2) How do they affect transfer? • Findings: (1) Relationship (symmetry and ‘closer’) with the matchmaker of the two families can’t explain the using of negotiator. (2) Positive effect of negotiator on transfers OLS: 21% increase in total transfer HHFE: 60% increase in total transfer, unbelievably large because of unobservable altruism IV: insignificant with vs. without pre-marital relationship: insignificant vs. positive distance: largest effect for the case the families are in the same county but different villages bride-price vs. dowry: positive vs. insignificant

  3. Negotiation’s effect on Total Transfer (2SLS) ---- IV Validity • Claim: The relationship (IV) affects transfers (LHS) only through the negotiator dummy (RHS) … doesn't appear in matchmaker’s solution of total transfers Does this depend on the specific utility function?

  4. Effects on Bride-price and Dowry Separately Table 7---- Endogeneity?

  5. Modeling • Matchmakers don't take into consideration of families’ participation decisions. • Families’ rationale of using negotiator. Why not direct negotiation?

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