Abstract
Current money matching models employ either random matching or endogenous matching processes, both of which oversimplify the problem. We maintain that, although most economic interactions are intentional, some randomness remains. We offer an endogenous matching model of money with random consumption preferences. Our model preserves the intentionality of economic interactions while leaving scope for chance. We identify the conditions for potential monetary and nonmonetary equilibria and compare them to those of other endogenous matching and random matching models.
Acknowledgements
The authors thank our reviewers, Joshua R. Hendrickson, and session participants at the Association for Private Enterprise Education annual conference for helpful comments and suggestions.
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© 2019 Walter de Gruyter GmbH, Berlin/Boston
Articles in the same Issue
- Research Articles
- Sustaining Cooperation Through Strategic Self-Interested Actions
- Endogenous Markup, Per Capita Income and Population Size in the Gravity Equation
- Profits Under Centralized Negotiations: The Efficient Bargaining Case
- Disentangling Intertemporal Substitution and Risk Aversion Under the Expected Utility Theorem
- Managerial Delegation Contracts, “Green” R&D and Emissions Taxation
- Entry Deterrence, Coordinating Advertising and Pricing in Markets with Consumption Externalities
- Do Time Preferences Matter in Intertemporal Consumption and Portfolio Decisions?
- From Jungle to Civilized Economy: The Power Foundation of Exchange Economy Equilibrium
- Endogenous Matching and Money with Random Consumption Preferences
- Notes
- An Asymmetric Duopoly Model of Price Framing
- A First Price Auction with an Arbitrary Number of Asymmetric Bidders
- Stable Matching with Double Infinity of Workers and Firms
Articles in the same Issue
- Research Articles
- Sustaining Cooperation Through Strategic Self-Interested Actions
- Endogenous Markup, Per Capita Income and Population Size in the Gravity Equation
- Profits Under Centralized Negotiations: The Efficient Bargaining Case
- Disentangling Intertemporal Substitution and Risk Aversion Under the Expected Utility Theorem
- Managerial Delegation Contracts, “Green” R&D and Emissions Taxation
- Entry Deterrence, Coordinating Advertising and Pricing in Markets with Consumption Externalities
- Do Time Preferences Matter in Intertemporal Consumption and Portfolio Decisions?
- From Jungle to Civilized Economy: The Power Foundation of Exchange Economy Equilibrium
- Endogenous Matching and Money with Random Consumption Preferences
- Notes
- An Asymmetric Duopoly Model of Price Framing
- A First Price Auction with an Arbitrary Number of Asymmetric Bidders
- Stable Matching with Double Infinity of Workers and Firms