3 ms·
I'm not sure I agree with your second point (that it need little resale value). Not only does the cost of the ring signal that the proposer is genuine. The valu
by gizmo686 13y ago
I'm not sure I agree with your second point (that it need little resale value). Not only does the cost of the ring signal that the proposer is genuine. The value of the ring compensates the proposer if the proposer divorcees. Presumably, the proposee is signalling her genuiness because (s)he has an asymmetrically high cost associated with the marriage.
- ghshephard 13y agoWithout having zero (or close to zero) resale value, there is a risk that proposee is incented to leave the marriage with the ring and capture the value. If there is no value, then there is no incentive to leave. The incentive for the proposer is that they can't afford to keep purchasing rings.