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Benoit Julien and Richard Dutu
''Ex-ante production, directed search and indivisible money''
( 2008, Vol. 5 No.7 )
There always exists a monetary equilibrium when search is directed, money is indivisible and production is on demand (Julien Kennes King 2007). We demonstrate that when production takes place before exchange, forcing sellers to incur a sunk cost, there must be a minimum buyer-seller ratio for the monetary equilibrium to survive.
JEL: E4 - Money and Interest Rates: General
D4 - Market Structure and Pricing: General
Manuscript Received : Feb 18 2008 Manuscript Accepted : Feb 25 2008

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