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3. In October 2004, Tiger Woods married Elin Nordegren at the Sandy Lane resort,

Barbados. Their prenuptial agreement specified that Ms Nordegren would receive $20

million after 10 years of marriage

December 3, 2009.)

a)

Explain the asymmetry of information in a marriage between a wealthy man or

woman and a relatively poorer spouse.

b)

Explain the prenuptial agreement in terms of a contingent contract.

c)

How can the prenuptial agreement screen gold-diggers from true life partners?

d)

Can the relatively poorer spouse use the prenuptial agreement to signal his/her true

quality?