Marital investments, time consistency and emotions

A benchmark model of a married couple's educational investment yields an inefficient outcome due to the possibility of opportunistic divorce. Motivated by findings in social psychology, I use psychological game theory to incorporate belief-dependent guilt feelings. Multiple equilibria become possible. Some marriages have inefficient under-investment. Some have efficient outcomes and preclude divorce. If guilt is sufficiently important, a life-long efficient marriage is implied because a spouse may signal a trust so strong as to force the partner to hold beliefs that make divorce unattractive.