Modeling Competition and Market Equilibrium in Insurance: Empirical Issues by Pierre-Andre Chiappori and Bernard Salanie. Published in volume 98, issue 2, pages 146-50 of American Economic Review, May 2008

We analyze, from a theoretical perspective, the impact of innovations in birth control technology on intrahousehold allocation of resources. We consider a model of frictionless matching on the marriage market in which men, as well as women, differ in their preferences for children; moreover, men, unlike women, must marry to enjoy fatherhood. We show that more efficient birth control technologies generally increase the “power,” hence the welfare, of all women, including those who do not use them. This “empowerment” effect requires that the new technology be available to single women. An innovation reserved to married women may result in a “disempowerment” effect.