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Poverty and InequalitySexual and Reproductive HealthFamily, Maternal & Child HealthMethodology

Games Parents and Adolescents Play: Risky Behaviors, Parental Reputation, and Strategic Transfers

TitleGames Parents and Adolescents Play: Risky Behaviors, Parental Reputation, and Strategic Transfers
Publication TypeJournal Article
Year of Publication2008
AuthorsHao, L, Hotz, VJ, Jin, GZ
JournalEcon J (London)
Volume118
Pagination515-555
Date PublishedApr 1
ISBN Number0013-0133 (Print) 0013-0133 (Linking)
Accession Number21660221
Abstract

This paper examines parental reputation formation in intra-familial interactions. In a repeated two-stage game, children decide whether to drop out of high school or daughters decide whether to have births as teens and parents then decide whether to provide support to their children beyond age 18. Drawing on Milgrom and Roberts (1982) and Kreps and Wilson (1982), we show that, under certain conditions, parents have the incentive to penalize older children for their adolescent risk-taking behaviours in order to dissuade their younger children from such behaviours when reaching adolescence. We find evidence in favour of this parental reputation model.

PMCID

3109916