Legal reform in the presence of a living custom: an economic approach.

Empowerment of disadvantaged groups of population is a key issue in development. One major difficulty in implementing progressive legal reforms arises from the persistent and contrary influence of custom. In this paper, we present a simple theoretical framework that analyzes how customary rules evolve under the impact of a change in formal law. This evolution is ultimately caused by a modification of relative costs and benefits of exiting the community by members of the disadvantaged groups as a result of change in the law. We also describe how the welfare of these groups is affected and provide illustrative evidence.

Strategic behavior and marriage payments: theory and evidence from Senegal.

This article proposes an original theory of marriage payments based on insights gained from firsthand information collected in the Senegal River valley. This theory postulates that decisions about the bride-price, which are made by the bride's father, take into account the likely effects of the amount set on the risk of ill-treatment of the wife and the risk of marriage failure. Based on a sequential game with three players (the bride's father, the husband, and the wife) and a matching process, it leads to a number of important predictions that are tested against Senegalese data relating to bride-prices and various characteristics of women. The empirical results confirm that parents behave strategically by keeping bride-prices down so as to reduce the risk of marriage failure for their daughters. Other interesting effects on marriage payments and the probability of separation are also highlighted, stressing the role of the bride's bargaining power in her own family.