All Rights Reserved
AccessEcon LLC 2006, 2008.
Powered by MinhViet JSC
ralph lauren polo

 
R. Vijay Krishna
 
''Non-robustness of the cash-in-advance equilibrium in the trading post model''
( 2005, Vol. 5 No.3 )
 
 
The main justification for cash-in-advance (CIA) equilibria when there are multiple assets is a Shapley-Shubik trading-post model where the agents coordinate on a particular medium of exchange. Of course, there are other equilibria. We introduce a refinement and show that the CIA equilibrium does not satisfy our refinement while there exist equilibria that do.
 
 
Keywords:
JEL: E4 - Money and Interest Rates: General
 
Manuscript Received : Jan 01 2005 Manuscript Accepted : Jan 10 2005

  This abstract has been downloaded 698 times                The Full PDF of this paper has been downloaded 87709 times