Transplants and implants: The economics of self-improvement

This article examines equilibrium self-improvement and marriage proposal st rategies in a two-sided search model with nontransferable utility. Singles are vertically differentiated-some make better marriage partners than other s. A complete characterization of equilibrium is provided. It is shown ther e are two externalities to self-improvement decisions. Further, these exter nalities may support multiple Pareto rankable equilibria. By encouraging ev erybody to self-improve, society can create a situation where everybody is forced to improve to remain "acceptable." But a preferred equilibrium may e xist where there is less (costly) self-improvement.