Accession Number:
AD0735969
Title:
A Theory of Money and Financial Institutions. Part III. The Missing Degree of Freedom: Commodity Money and Oligopoly in a General Equilibrium Model,
Descriptive Note:
Corporate Author:
YALE UNIV NEW HAVEN CONN COWLES FOUNDATION FOR RESEARCH IN ECONOMICS
Personal Author(s):
Report Date:
1971-12-17
Pagination or Media Count:
33.0
Abstract:
It is suggested that an extra degree of freedom is needed to construct a symmetric noncooperative price game in a market with n monopolists trading in n goods. This calls for the introduction of an n1 good which can be interpreted as a commodity money. The quantity game is examined. Necessary conditions are shown for the replicated game to have its noncooperative equilibria approach the competitive equilibria of the replicated market. A shadow price is discussed in relation to monetary capacity constraints.
Descriptors:
Subject Categories:
- Economics and Cost Analysis