A commodity-money refinement in matching models

• 成果类型: Article
• 署名作者: Wallace, N; Zhu, T
• 署名单位: Pennsylvania Commonwealth System of Higher Education (PCSHE); Pennsylvania State University; Pennsylvania State University - University Park; Cornell University
• 刊物名称: JOURNAL OF ECONOMIC THEORY
• ISSN/ISSBN: 0022-0531
• DOI: 10.1016/j.jet.2003.07.007
• 发表日期: 2004
• 页码: 246-258
• 关键词: commodity model; refinement; matching model

摘要

We apply a commodity-money refinement to matching models in which people meet in pairs and buyers make take-it-or-leave-it offers to sellers. The refinement is applied by attaching a utility value to nominal money and letting that value approach zero. An equilibrium satisfies the refinement if it is such a limit. We show that the refinement eliminates a class of non-full-support steady states. (C) 2003 Elsevier Inc. All rights reserved.