Commodity money with frequent search

• 成果类型: Article
• 署名作者: Oberfield, Ezra; Trachter, Nicholas
• 署名单位: Federal Reserve System - USA; Federal Reserve Bank - Chicago
• 刊物名称: JOURNAL OF ECONOMIC THEORY
• ISSN/ISSBN: 0022-0531
• DOI: 10.1016/j.jet.2012.09.013
• 发表日期: 2012
• 页码: 2332-2356
• 关键词: commodity money; search; multiple equilibria; sunspots

摘要

A prominent feature of the Kiyotaki Wright model of commodity money is multiplicity of dynamic equilibria. We show that the extent of multiplicity hinges on the frequency of search. Holding fixed the average number of meetings over time, we vary search frequency by altering the interval between search opportunities. To isolate the role of search frequency, we focus on symmetric equilibria in a symmetric environment. For each frequency we characterize the entire set of payoffs, strategies, and dynamic paths consistent with equilibrium. Indexed by these features, as search frequency increases the set of equilibria converges uniformly to a unique limiting equilibrium. (C) 2012 Elsevier Inc. All rights reserved.