[UTMD-097] Communication Technology Advances and Consequences: Using Two-sided Search Model (by Takahiro Moriya)

Takahiro Moriya

Do advances in communication technology, such as online dating sites and social networking services, change the value of being in a relationship? This paper constructs a non-stationary, two-sided search market equilibrium model, including cohabitation, to analyze the quantitative effects of advances in communication technology on individuals’ marital behavior and welfare. This paper provides a new proof of the existence of a non-stationary market equilibrium and establishes its local uniqueness. Using the model’s equilibrium condition, I develop a new identification argument to separately identify parameters previously considered difficult to identify. This paper estimates the structural model with indirect inference, using the NLS 72 and the NLSY 97. I show that changes in mating preference contribute more to changes in marital behaviors than do advances in communication technology.