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):

• Shubik,Martin

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:

• (*COMMERCE
• *GAME THEORY)
• MONEY
• ECONOMICS
• MATHEMATICAL MODELS
• DYNAMICS

Subject Categories:

• Economics and Cost Analysis

Distribution Statement:

APPROVED FOR PUBLIC RELEASE