Learning and Money Adoption

• 成果类型: Article; Early Access
• 署名作者: Choi, Michael; Liang, Fan
• 署名单位: University of California System; University of California Irvine; Loyola Marymount University
• 刊物名称: JOURNAL OF POLITICAL ECONOMY
• ISSN/ISSBN: 0022-3808
• DOI: 10.1086/722983
• 发表日期: 2023
• 关键词: information; liquidity; POLICY

摘要

We consider a dynamic monetary economy where agents gradually learn about the holding cost of a new asset and coordinate to adopt it as money or abandon it. We provide closed-form solutions for state-contingent asset prices and agents' adoption decision. The transactional benefits of using money are endogenous and can convexify or concavify the payoff structure. Thus, the arrival of new information can raise or reduce the asset's price, which is in sharp contrast to standard insights in experimentation models. Full disclosure of the asset type and an increase in the learning speed improve information but have different welfare implications.