The bargaining family revisited

We suggest a family bargaining model where human capital investment decisio ns are made non-cooperatively in a first stage, while day-to-day allocation of time is determined later through Nash bargaining, but with non-cooperat ive behaviour as the fall-back. One finding is that overinvestment in educa tion may be even more of a problem in such a semi-cooperative model than in a fully non-cooperative one. Even though both the semi-cooperative model a nd the fully non-cooperative model predict overinvestment in education, pol icy conclusions that follow from the two models are distinctly different.